RIL gains over 2% after KKR-Reliance Retail deal

Shares of Reliance Industries (RIL) advanced over 2 per cent in Wednesday’s trade after the company said global investment firm KKR will invest Rs 5,550 crore in its subsidiary Reliance Retail Ventures (RRVL) for 1.28 per cent equity stake.

The scrip traded 2.50 per cent higher at Rs 2,266.75 at around 9.20 am (IST), while the benchmark BSE Sensex traded 0.85 per cent up at 38,056 at around the same time.

“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.

Reliance Retail, a subsidiary of RRVL, operates India's largest, fastest-growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide.

Commenting on the development, Mukesh Ambani, Chairman and Managing Director, 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.”

Morgan Stanley was the financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell were legal counsels. Deloitte Touche Tohmatsu India LLP was the financial advisor to KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP were legal counsel to KKR.