New Normal: Ambani's Retail Venture receives another investment!
By Priti Kumari
In the way of seeking spate of investment, Reliance Industries proclaimed that the Singapore investment company GIC and the global investor TPG will jointly acquire 1.63% equity stake in Reliance Retail Venture Limited (RRVL) on a fully diluted basis, in exchange of INR 7,350 crore investment.
Having shares in more than 40 countries, Singapore’s giant investment company came into existence in 1981 for managing Singapore`s foreign reserves. With an investment of INR 5,512.2 crore, it will obtain a 0.41% share in RRVL. Citing about GIC`s significance for India`s retail market, Mukesh Ambani the Chairman & MD of Reliance Industries Limited (RIL) articulated, "I am delighted that GIC, with its track record of close to four decades of successful long term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape ."
GIC`s global network & track record of long term partnerships will be invaluable to the transformation story of Indian Retail. This investment is a strong endorsement of our strategy & India`s potential', he added. . Expressing his views on this, GIC CEO Lim Chow Kiat stated, "Reliance Retail will continue to use its extensive supply chain & store networks as well as strong logistics 7 data infrastructure, to add value to its customers and shareholders.”
For raising its equity share in RRVL, TPG will once again invest in the Indian retail market. This time TPG will invest INR 1,837.5 crore taking 0.44% share in India`s largest retail arm. Formerly, TPG had already invested INR 4,546.8 crore in JIO platforms. Commenting on this, Isha Ambani said, "We are delighted to welcome TPG to the Reliance Retail family in our journey of revolutionizing the Indian Retail landscape and improving the economic prospects of millions of merchants and enhancing the consumer experience.TPG`s rich experience will be invaluable to the Reliance Retail mission."
Within three days, Reliance industries entered into various deals. For instance, the Abu Dhabi based sovereign wealth fund Mubadala, the global private equity firm 'General Atlantic', US investor 'Silver Lake ' etc. have expressed great pleasure for investment.