US private equity group KKR will invest 5,550 crore ($754 million) in India’s largest retailer, Reliance Retail Ventures, which is run by the South Asian billionaire Mukesh Ambani.
The investment buys KKR a 1.28 percent stake in the company and marks the second investment by the American firm in Ambani’s business. The investment also values the Indian magnate’s retail unit at a pre-money equity value of 4.2 lakh crore, or $57 billion, the company said in a bourse filing on Wednesday.
The deal led to an increase in Reliance Industries’ shares, which gained three percent on the same day, following the announcement.
Last May, it was reported that the global investment company would invest $1.5 billion in Jio Platforms, a technology venture of Reliance Industries.
Ambani also raised billions of US dollars from other investors for Jio, including Facebook, Google and Qualcomm, among others during the coronavirus lockdown.
With a net worth of $85.7 billion, Ambani is one of India’s richest businessmen. He runs the oil and gas giant Reliance Industries.
Its subsidiary, Reliance Retail, operates more than 682 stores, and is considered the largest in India in terms of revenue. It topped the list of 50 fastest-growing retailers globally between 2013 and 2018 in Deloitte’s Global Powers of Retailing 2020 Index.
(Reporting By Cleofe Maceda; editing by Seban Scaria)
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