InvestorQ : Is it true that Silver Lakes is also picking up a stake in Reliance Retail?
Archita Jajjoo made post

Is it true that Silver Lakes is also picking up a stake in Reliance Retail?

Niti Shenoi answered.
2 years ago

Not much is confirmed but it has been reported in the Financial Times London. The last 3 times had reported about a stake sale by Jio Platforms, they were bang on target. So I would be inclined to believe that there is some truth in what they are saying.

As per the report, Silver Lake Partners proposes to invest $1 billion in the Reliance Retail Ventures, the company that has recently taken over the retail, wholesale, logistics and warehousing business of the Future group for a consideration of Rs.24,713 crore.

This deal by Silver Lake Partners is expected to value the retail business of Reliance Industries at around $57 billion. According to reports in the FT, the Reliance Group may look to hive off close to 10% of Reliance Retail Ventures to global investors.

This deal, if it actually fructifies, would add another $5.7 billion or Rs.40,000 crore to the Reliance cash kitty. As of now, they are already sitting on over Rs.75,000 crore after becoming zero net debt. This should take them to Rs.115,000 crore without Aramco.

It may be recollected that Silver Lakes was also a major investor in Jio Platforms when they had raised close to $20 billion by hiving off 33% stake. At that point of time, Silver Lakes had invested in Jio Platforms in two distinct tranches.