Billionaire Mukesh Ambani-controlled Reliance Industries Ltd (RIL) is actively considering selling a 15 per cent stake in Reliance Retail Ventures Limited (RRVL), the holding company for Reliance Retail Ltd and Reliance Brands, to a number of private equity investors and sovereign wealth funds in an attempt to raise Rs 60,000-63,000 crore. On Wednesday (September 9), RIL announced that US-based private equity firm Silver Lake would pump in Rs 7,500 crore into RRVL for a 1.75 per cent equity stake in the retail business.
It has been reported that Silver Lake is likely to be followed by KKR, which is reportedly in advanced discussion to infuse around $1.5 billion in the largest retailer in India as Ambani, the richest man in Asia, is all set to give a tough competition to Jeff Bezos’s Amazon and Walmart-led Flipkart in the country.
The oil-to-telecom conglomerate is planning to issue fresh shares to the investors and likely to complete the fundraising by October end. Online retail behemoth Amazon and American retail major Walmart been mentioned as potential suitors but no negotiations had been held with them.
More importantly, other investors in Jio Platforms, the RIL subsidiary for digital services, Saudi Arabia’s Public Investment Fund (PIF), Abu Dhabi-based Mubadala Investment Company, Abu Dhabi Investment Authority (ADIA), L Catterton and others are likely to invest to acquire stakes in the retail venture, too.
The financial daily quoted the person as saying, “The company has offered stakes to all the investors of Jio Platforms.” Intel Capital and Qualcomm are not interested in infusing money in the retail business while Facebook and Google have said they will take a call soon.
RIL had used the proceeds from the deals in Jio Platforms to largely cut debt, it is now expected to plough the fund in retail to scale up the business, especially the online retail entity in food and grocery as it poised to take on Amazon and Walmart-led Flipkart in India.
“As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis,” a RIL spokesperson told the publication in an email reply. “We have made and will continue to make necessary disclosures in compliance with our obligations under Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges,” he emphasised.
It is worth mentioning here that since April 22, Ambani, 63, has raised around $20 billion selling stakes in Jio Platforms to overseas investors such as Facebook and Google, the world’s seventh-richest person is all set to repeat the same with his retail venture. According to the Bloomberg Billionaires Index, Ambani’s net worth increased by $2.6 billion to reach $83.0 billion as of September 10.
WhatsApp us
Pingback: blote tieten