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GIC and TPG plans to invest Rs 7,350 Cr in Reliance Retail

Reliance Retails investments has been off the charts lately. The company just received a Rs 1,875 crores investment from Silver Lake and plans to raise $1 billion from Abu Dhabi’s Mubadala. Now, reports have come out suggesting that GIC and TPG are also planning to invest a hefty amount of Rs 7,350 crores in the company.

Details about the investment


Image Source: Business Today

Singapore sovereign wealth fund GIC plans to make an investment of Rs 5,512.5 crore in Reliance Retail Ventures Limited. While the global private equity firm TPG Capital will make an investment of Rz 1837.5 crores in the retail division of Reliance. So, the investments will result in the companies having a 1.22% and 0.41% stake in Reliance, respectively. Sharing his views on GIC’s investment Mukesh Ambani 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.”

TPG Capital - Wikipedia

Image Source: Wikipedia

Isha Ambani, Director of Reliance Retail, commenting on TPG’s investment also 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.”

Comments made by investors

Lim Chow Kiat, GIC Chief Executive Officer, said, “GIC is pleased to partner with Reliance through this new investment. It will also enable the company to position Reliance Retail for the strong secular growth in India’s retail market.”

And Jim Coulter, TPG Co-CEO, also said, “We are excited to join with them as they seek to create a more inclusive retail industry. That allows Kiranas and Indian consumers to benefit from the connectivity, efficiency, and accessibility of the Reliance Retail omnichannel platform”.

Future Plans of Reliance Retail

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After the Reliance acquired Future Retail to become Reliance Retail the company has raised huge capital. The company plans to combine its Retail store all over the country and the use of JioMart application. This will help them to create a network that will bring every essential product to the customers. Reliance also plans to compete with Amazon and other online vendors with their network.

What are your thoughts on the investment GIC and TPG made in Reliance? Do let us know in the comments below. Also, if you found our content informative and useful do like and share it with your friends.

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