Reliance Retail Aims to Raise Funds, in talks with Silver Lake to sell 1.8 Percent Stake
Reliance Retail, controlled by Billionaire Mukesh Ambani is reportedly in the final stage of negotiation with US private equity investor Silver Lake to offload 1.7 to 1.8 percent stake for around 
7,500 crore in an attempt to raise funds. The investment, which would value Reliance Retail at about $57 billion (nearly 4.3 lakh crore), comes as the country’s largest brick-and-mortar retail business is aiming to offload about 10 percent in new shares. Reliance Retail is India’s largest retail chain and recently acquired Future Group’s retail assets.
After raising over $20 billion from 13 overseas investors for its digital venture, Jio Platforms, Reliance Industries Limited (RIL) is poised to open its retail doors for global partners. The London-based daily mentioned that all the investors in Jio Platforms have been given the chance to invest in Reliance Retail. In July this year, addressing shareholders at the company’s 43rd annual general meeting (AGM), Mukesh Ambani said RIL is getting inquiries from strategic and financial investors and may begin bringing some on board in the coming months. “We will induct global partners and investors in Reliance Retail in the next few quarters,” he stated. Last month, RIL consolidated its position in India’s retail sector by acquiring the retail and wholesale business from Future Group for 24,713 crore. Post its acquisition of Future Group retail formats, Reliance Retail will have control over 53 million square feet of retail space and 18 million square feet of warehousing space. This is higher than Tesco, the world’s third-largest retailer, which has 50.1 million square feet of selling space in the UK, its home market. Reliance Retail reported a net profit of 431 crore for the June quarter despite 50 percent of its stores being fully shut, 29 percent partially operated due to the countrywide lockdown.
RIL’s telecom and digital arm Reliance Jio has raised $20.2 billion of investment from 13 global investors. According to the news report, investors in Jio platforms had been given the opportunity to invest in Reliance Retail as well.
The deal with Future Group will give RIL control of around one-third of retail stores of the country’s otherwise fragmented retail sector. Apart from that, RIL is also looking to tap into the fast-growing market for online shopping in India. With the launch of its e-commerce venture JioMart this year, RIL aims to take on global giants such as Walmart and Amazon.
