RIL : Advanced talk with Silver Lake on stake sale; Investment of $1 Billion in Reliance Retail

Reliance Industries is reportedly all set to have a discussion on selling $1 billion equity stake of Reliance Retail to US based private equity firm Silver Lake.

Financial Express cited the unidentified sources which revealed that this deal could value Reliance Retail at $5.7 billion. Reportedly, Mukesh Ambani by selling 10% equity stake in Reliance Retail expecting to earn $5.7 billion from investors. During the starting of this year, Silver Lake already bought 2.08% equity stake in RIL’s Telecom and  Rs 10, 202 in digital services unit Reliance Jio.

Adding to the tally, Reliance industries sold 32.97% stakes in Reliance Jio Platforms. The company sold out total of Rs 1.52 lakh crore to 13 different and big investors where the list includes : Facebook, Google, Qualcomm, KKR and more.

As we all are aware of the fact that Mukesh Ambani’s Reliance industries Ltd.(RIL) with Rs 13.91 lakh crore (about $189 billion) is India’s largest private listed Company.

As per Reports of Financial Express, “Silver Lake’s investments in Jio Platforms valued it at about $66 billion. Silver Lake’s investment in Reliance Retail at a valuation of $57 billion would take the combined valuation of Jio Platforms and Reliance Retail to $123 billion.

Reliance Retail had a total turnover of Rs 162,936 crore and a net profit of Rs 5,448 crore at the end of the previous fiscal year.”

According to the participants and investors in the market, Mr Ambani is considering technology and retail as two section of his business which are expected to earn cash and gain money.

His company’s latest mergers and Investments are : 

  • Kishore Biyani’s Future Group’s retail, logistics, warehousing and wholesale businesses in a slump sale worth Rs 24,713 crore.
  • Keeping an eye on the global e-commerce giants such as Amazon, Walmart owned Flipkart.
  • Radhakishan Damani owned Avenue Supermarts

Also Read : Reliance Retail in advanced talks with Silver Lake to sell 1.8% stake for Rs 7,500 crore