Reliance Industry has announced TPC and GIC as two of its valued investors in Reliance Retail Venture Limited (RRVL).
The global investment firm GIC will invest Rs5,512.5 crore ($752.08 million) which will translate into a 1.22% equity stake in Reliance Retail on a fully diluted basis. This announcement is made by Mr. Mukesh Ambani, The Chairman and Managing director of RRVL.
“GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for the strong secular growth in India’s retail market. We believe Reliance Retail will continue to use its extensive supply chain and store networks, as well as strong logistics and data infrastructure, to add value to its customers and shareholders”Lim Chow Kiat, Chief Executive Officer, GIC.
The second announcement after the GIC investment was made that global investment firm TPG will invest Rs. 1,837.5 crore into RRVL, a subsidiary of Reliance Industries. This investment will translate into a 0.41 per cent equity stake in RRVL on a fully diluted basis. The equity valued for this investment is Rs 4.285 trillion. Before this TPC invested Rs 4,546 crores in Jio platforms, a subsidiary of Reliance Industries. TPG is making the investment from its TPG Capital Asia fund. The transaction is subject to regulatory and other customary approvals.
Reliance Retail ltd.
Reliance Retail Limited, an RRVL affiliate, operates the fastest growing and most profitable retail company in India serving nearly 640 million footfalls through its nationwide 12,000 stores. The retail unit has reported a consolidated turnover of Rs 659,205 crore, cash profit of Rs 71,446 crore and net profit of Rs 39,880 crore for the year ended March 31.
What does an investment firm do?
Investment firms also referred to as investment trusts, closed-end or closed-end funds, are limited to investing. By buying and selling shares, property, and other properties, they make a profit. In order to create a diverse, controlled portfolio, an investment manager chooses what assets to purchase.
What is GIC?
It was formerly known as Government of Singapore Investment Corporation, is a leading global investment firm founded to manage the foreign reserves of Singapore in 1981. GIC is a disciplined long-term value investor and is ideally positioned to invest in a wide variety of asset groups, including equity , fixed income, private equity, real estate and infrastructure. GIC has investments in over 40 countries and has been investing for more than two decades in emerging markets. It is a government-owned company assigned to manage Singapore’s sovereign wealth fund.
What is TPC?
It was previously known as Texas Pacific Group, is an American investment company founded by by David Bonderman, James Coulter, and William S. Price III in 1922. TPG investments includes growth capital, venture capital, public equity, and debt investments. In the early 2000s, TPG assumed full ownership of the Newbridge joint venture, renaming the firm TPG Newbridge. At the beginning of 2007, when the firm officially changed its name from Texas Pacific Group to TPG Capital, TPG Newbridge’s Asian funds were also rebranded as the TPG Asia Funds. TPG remained active in Asia in 2008.