Reliance Industries, on Thursday (November 18), announced the completion of its INR 47,265 Cr fundraise for Reliance Retail Ventures Limited (RRVL).
“RRVL received a cumulative subscription of INR 47,265 Cr from financial partners and allotted a 10.09% stake (or 69.27 Mn shares) to them,” it said.
Reliance Retail is India’s largest retail chain, both by revenue and the total number of stores. It operates in nearly 12,000 stores across 6,600 towns and cities, covering an area of 28.7 Mn square feet.
In the second quarter of the current fiscal year (2020-21), Reliance Retail’s revenue stood at INR 41,100 Cr, registering a 30% growth from the previous quarter. Net profit for the enterprise was INR 973 Cr, an increase of 125.8% from the previous quarter.
The recent fundraise for Reliance Retail, the largest for it ever, saw the company raise funds from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG Capital and Abu Dhabi Investment Authority (ADIA).
Earlier this week, Reliance Retail acquired a 96% stake in omnichannel furniture and decor retailer Urban Ladder for INR 182 Cr.
Meanwhile, Reliance Retail’s INR 24,713 Cr deal to acquire Kishore Biyani-owned Future Group’s retail, wholesale, logistics, and warehousing businesses, has been stuck in limbo, after US retail giant Amazon initiated legal proceedings against the deal.
Amazon, which had last year bought a 49% stake in Future Coupons, the promoter-entity of Future Retail, has contended that according to its contract with Future, the sale of the business to certain companies, including Reliance is barred.
Amazon’s decision to pursue legal action against Future Group will also have a bearing on the competition among the retail giants in India.
With the launch of its online store JioMart earlier this year, Reliance Retail entered into direct competition with Amazon in the ecommerce sector.