Global funds GIC, TPG to invest Rs 7,350 crore in Reliance Retail

Media reports suggest, two global funds; Singapore’s GIC and US-based TPG will invest Rs 7,350 crore in Reliance Retail Ventures (RRVL) to acquire 1.6 per cent stake in the company.

GIC will invest Rs 5,512 crore to purchase 1.22 per cent in the company while TPG Capital Asia fund will pick 0.41 per cent of stake for Rs 1,837 crore, valuing RRVL before the investment at Rs 4.28 lakh crore.

The duo will take the number of international funds making a beeline to invest in the holding company of Reliance Retail to seven and the total foreign direct investment into the country’s largest retailer to nearly Rs 36,200 crore to purchase nearly 7.3 per cent in the company.

In the last three weeks, half-a-dozen other global funds including Silver Lake, KKR, General Atlantic, Mubadala have already announced investments worth billions of dollars into Reliance Retail, that operates 12,000 brick-and-mortar stores. Abu Dhabi’s sovereign fund Mubadala Investment Co has announced investments worth Rs 6,247 crore for a 1.4 per cent stake investment in the entity.