Why is Reliance back in the fund raising market monetizing its stake in Reliance Retail Ventures?

One thing we learnt in the last few months is that good projects and good business ideas always find investors. You can have COVID or war or bad markets, but investors are still willing to commit money in good ideas. That is what we saw in Jio Platforms and RRVL.

In fact, after Jio Platforms, it is now the retail venture that is helping in monetization. RIL now looks set to monetize its retail franchise and the process has already begun. In the last couple of weeks, RIL has already raised Rs.33,000 crore selling over 7% to give investors.

Five of the PE funds that invested in Jio Platforms have also invested in Reliance Retail. These include KKR, TPG, Silver Lakes, General Atlantic and Mubadala Investments. GIC had not participated in Jio Platforms. Other investors like ADIA and Vista Equity are in talks.

Reliance Retail is getting valuations of $60 billion but that could increase once the integration of Future Enterprises is completed. By the end of 2021, RIL could be sitting on Rs.2 trillion of cash after becoming net zero debt company. It could be higher if they monetize more in RRVL.