Silver Lake's co-investors to add another Rs 1,875 crore investment in Reliance Retail

Co-investors of US-based private equity giant Silver Lake will invest an additional Rs 1,875 crore in Reliance Industries (RIL) retail unit, the latest deal underscoring growing interest from global investors.

This takes the combined investment by Silver Lake and its co-investors in Reliance Retail Ventures Limited (RRVL) to Rs 9,375 crore in exchange for a 2.13 percent stake.

This latest investment — the second on September 30 and fourth in three weeks — values Reliance Retail at a pre-money equity value of ₹ 4.285 lakh crore, RIL said in an exchange filing.

Silver Lake, whose portfolio includes stakes in Airbnb and Twitter Inc, has previously invested in Reliance's digital business.

Commenting on the aggregate investment brought by Silver Lake, Mukesh Ambani, Chairman and Managing Director of RIL, said, “Silver Lake and its co- investors are valued partners on our journey to transform Indian Retail for the benefit of all Indians. We are pleased to have their confidence and support, as well as the benefit of their leadership in global technology investing and their valued network of relationships for the Retail revolution in India. Silver Lake’s additional investment is a strong endorsement of the tremendous potential of Indian Retail and the capabilities of Reliance Retail.”

Reliance Retail has been aggressively collecting funds in the past few weeks from overseas investors. India’s biggest brick-and-mortar retail business collected a combined Rs 13,050 crore in the past few weeks from private equity giant Silver Lake Partners and US buyout firm KKR & Co in exchange for 1.75 percent and 1.28 percent stakes, respectively.

Earlier on 30 September, private equity firm General Atlantic said it will invest Rs 3,675 crore in Reliance Retail in exchange for a 0.84 percent stake.

Commenting on the investment, Egon Durban, Co-CEO and Managing Partner of Silver Lake, said, “We are delighted to increase our exposure and bring more of our co-investors into this unmatched opportunity. The continued investment momentum over the last few weeks is proof of the compelling vision and business model of Reliance Retail – and underscores the tremendous potential of the transformative New Commerce initiative.”

The transaction is subject to regulatory and other customary approvals.

Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Latham & Watkins and Shardul Amarchand Mangaldas & Co acted as legal counsels for Silver Lake.

Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.