After Jio, global investors turn focus to Reliance Retail; Carlyle Group may pick up $2 bn stake in RRVL

American private equity group in its first investment in the Indian retail sector may buy stakes worth $2 billion in Mukesh Ambani-led Reliance Retail Ventures Ltd (RRVL), according to a report.

Mumbai: After Jio Platforms, Reliance Retail is turning out it be all the rage with global investors who are lining up to get a piece of action from billionaire Mukesh Ambani stable. American private equity company Carlyle Group has reportedly shown interest in buying a stake in Reliance Retail Ventures Ltd (RRVL).

If the deal between RRVL and Carlyle is sealed, it will be the US-based global investment firm’s first investment in the retail sector in India. It is looking for options to invest both in the online and offline retail space in the country, including Reliance Retail, the report said.

According to a report in business news daily Mint, the negotiations between Carlyle and Reliance Industries Ltd’s retail arm are still underway and it is unclear whether a deal will materialise.

Last week a Bloomberg report said that the Jeff Bezos-led Amazon.com is in discussions with RIL to invest as much as $20 billion for 40% stake in Reliance Retail and showed interest in discussing potential deals. Shares of RIL shares rose as much as 8.15 per cent to a record high of Rs 2,344.95 on the NSE on September 10 on the development.

The Indian conglomerate, however, denied the report of any potential deal with the US rival. The deal would have been the largest for India and the global e-commerce giant transforming the relationship between the two from tough rivals to partners.

The development comes close on the heels of the Ambani-led group company raising Rs 7,500 crore from US-based investment firm Silver Lake which bought 1.75% stake in RRVL last week.

“Reliance Industries and Reliance Retail Ventures (RRVL) announced today that Silver Lake will invest Rs 7,500 crore into RRVL, a subsidiary of Reliance Industries. This investment values RRVL at a pre-money equity value of Rs 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75 per cent equity stake in RRVL on a fully diluted basis,” RIL said in a release.

It was also reported that the RRVL, which is the holding company for the RIL’s retail assets, may raise $5 billion in additional investments from KKR and Company, Mubadala Investment Company and Abu Dhabi Investment Authority, all of which already hold stakes in Ambani’s Jio.