American Private Equity Invested 7500 cr In Reliance Retail to come out from debt. Currently, RIL has a gross debt of over Rs 3 lakh crore and a net debt of Rs 1.5 lakh crore. Reliance Industries raised more than $20 billion from global investors, including Facebook Inc, by selling its stakes in Jio Platforms.
The investment, which valued Reliance Retail at about $57 billion, arrived as the company was aiming to sell about 10% in new shares.
Private equity firm Silver Lake Partners was interested in investing $1 billion in the retail arm of Reliance Industries Ltd.
Reliance, an oil-to-telecoms firm regulated by India’s richest man, Mukesh Ambani, is pitching its business as a force in the world’s second-most populous country, which is expanding rapidly to potential investors.
Silver Lake Partners was the first U.S.-based private equity firm to buy into Jio Platforms after Facebook Inc. and purchased a 9.99% stake in the company. Silver Lake invested in Jio in two tranches.
Unlike the Jio Platform deals, this deal valuation may be a bit underwhelming as it does not bring in a new strategic player and the fact that debt is no more seen as a concern.
Reliance, the brokerage said, may now have exhausted its large near-term inorganic triggers even as organic earnings may struggle to deliver big surprises in the current environment.
Silver Lake, whose companies includes Airbnb and social media firm Twitter Inc, has previously invested in Reliance’s digital business as part of a fund-raising.
On transaction with Silver Lake, Mukesh Ambani, said, “I am delighted to extend our relationship with Silver Lake to our transformational efforts of building an inclusive partnership with millions of small merchants while providing value to Indian consumers across the country in the Indian retail sector.”