Global investment firm KKR is set to buy a 1.28 per cent equity stake in Reliance Industries Ltd.'s retail business, according to a company statement.
"This investment values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore. This marks the second investment by KKR in a subsidiary of Reliance Industries, following a Rs 11,367 crore investment in Jio Platforms announced earlier this year," Reliance Industries said in a statement.
KKR will invest Rs 5,550 crore in the Mukesh Ambani-led Reliance Retail Ventures.
Operating India's largest, fastest-growing, and most profitable retail business, Reliance Retail, a subsidiary of RRVL, has up to 12,000 stores nationwide.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: "KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years.
We look forward to working with KKR's global platform, industry knowledge, and operational expertise across our digital services and retail businesses."
This marks KKR's second investment in Reliance after it pumped in Rs 11,367 crore in Mukesh Ambani's Jio platform for a 2.3 per cent stake earlier this year.
Henry Kravis, co-founder, and co-CEO said "Reliance Retail's new commerce platform is filling an important need for both consumers and small businesses as more Indian consumers move to shopping online and the company offers tools for Kiranas to be a critical part of the value chain."
Meanwhile, on September 9, RIL had announced the divestment of 1.75 per cent stake in the retail arm to private equity firm Silver Lake Partners for Rs 7,500 crore.
Analysts had earlier predicted that Reliance Industries' stake sale in its retail arm will enable the company to pursue other growth initiatives while maintaining zero net debt status and also help solidify its position in the market.
(With PTI inputs)