US private equity firm Silver Lake (SLP) co-investors will be investing additional ₹18.75 billion into Reliance Retail Ventures, the retail arm of Reliance Industries, the firm said in a regulatory filing late on Wednesday.
Silver Lake, whose portfolio includes stakes in Airbnb and Twitter Inc, has previously invested in Reliance's digital business.
Silver Lake’s co-investors’ current investment ( ₹1,875 crore) values Reliance Retail Ventures Limited (RRVL) at a pre-money equity value of ₹4.285 lakh crore - about ₹7,000 crore higher than the valuation of ₹4.21 Lakh crore for SLP’s earlier investment in Reliance Retail.
Also Read: Reliance Retail arm receives ₹7,500 cr from Silver Lake for 1.75% stake sale
This brings the aggregate investment by Silver Lake and its co-investors in RRVL to ₹9,375 crore, which will translate into a 2.13% equity stake in RRVL on a fully diluted basis.
And this also marks the third large investment from the house of Silver Lake and its associates in a Reliance Industries subsidiary after putting ₹7,500 crore in RRVL earlier this month and $1.35 billion (over ₹10,200 crore) investment in Jio.
Also Read: Silver Lake invests ₹7,500 crore in Reliance Retail Ventures, acquires 1.75% stake
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Latham & Watkins and Shardul Amarchand Mangaldas & Co acted as legal counsels for Silver Lake.
(With agency inputs)
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