Carlyle Group Plans $2 Billion Investment in RIL's Retail Arm

By siliconindia  |  Monday, 14 September 2020, 11:45:05 AM IST

Carlyle Group Plans $2 Billion Investment in RIL's Retail Arm
Carlyle Group, a private equity firm is showing interest to invest in the Indian conglomerate Reliance Industries' retail business. The investment could be up to $2 billion, according to reports. Carlyle Group is all set to join the queue of marquee investors that are keen on buying stakes in the units of Mukesh Ambani led Reliance Industries. 
This deal would be Carlyle's first investment in the retail sector in India, as well as the company's biggest investment to date in an Indian company. The sources also state that the retail story is definitely a bright spot. The company is also looking forward to investing across the retail space in India that comprises both offline and online retail firms, which include Reliance Retail. 
Moreover, Carlyle's investment in RRVL is still at the discussion stage. The final deal may eventually not fructify says the sources. While, the Reliance Retail, a unit of RRVL, functions India's largest and fastest-growing retail business with more than 12,000 stores across the country. 
After its recent acquisition of Future Group's retail business, RRVL has got attention from various large investors. Last week, RRVL has raised $1 billion from Silver Lake Partners. It was also reported that the retail firm is expected to draw $5 billion in additional investments from KKR and Co., Mubadala Investment Co., and Abu Dhabi Investment Authority. 
Silver Lake, a private equity firm and RIL's Jio platforms investor has picked up a 1.75 percent stake in RRVL for 7,500 crore taking the company's value to $4.21 trillion, or $$57 billion. While the latest plan of Carlyle also values  Reliance Retail at similar levels. But, Carlyle has not confirmed the news on talk with Reliance. 
It is also reported that the Reliance evaluated various opportunities on an ongoing basis. Further, the company has also made and will continue to make necessary disclosures in compliance with its obligations under the Securities Exchange Board of India and its agreements with the stock exchanges.
 

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