GIC & TPG To Invest Rs. 7350 Crores in Mukesh Ambani's Reliance Retail Ventures

In less than a day, Reliance Industries Limited’s subsidiary Reliance Retail Ventures Limited (RRVL) has received investment commitments from two investors — GIC and TPG. While GIC will invest Rs 5,512.5 crore, TPG will invest around Rs 1,837.5 crore. Both these investments are subjected to regulatory and other customary approvals.

With this investment, TPG will pick 0.41 per cent equity stake in RRVL whereas GIC investment will own 1.22 per cent equity stake.

TPG will be making the investment from its TPG Capital Asia fund. For Singapore‘s GIC, it is the first investment in Reliance Industries whereas, for TPG, this is the second investment in Reliance Industries.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “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 and 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 and India’s potential.”

Commenting on the partnership with TPG, Isha Ambani, Director of Reliance Retail, 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.”

Puneet Bhatia, Co-Managing Partner and Country Head, India of TPG Capital Asia, said, “There is a significant opportunity to transform the Indian retail ecosystem for the better. Through their new commerce initiative, Reliance Retail continues to lead the industry by creating a retail platform that meets the demands of a new generation of Indian consumers. We are excited to work with Reliance Industries as they reimagine the retail experience across the value chain.”

Commenting in GIC’s investment decision, Lim Chow Kiat, Chief Executive Officer, GIC, said, “GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for the strong secular growth in India’s retail market. We believe Reliance Retail will continue to use its extensive supply chain and store networks, as well as strong logistics and data infrastructure, to add value to its customers and shareholders.”