Reliance Industries in the press release to exchanges has informed that Silver Lake will invest₹ 7,500 crores into RRVL, a subsidiary of Reliance Industries. This investment values RRVL at a pre-money equity value of ₹ 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75% equity stake in RRVL on a fully diluted basis.
This marks the second billion-dollar investment by Silver Lake in a Reliance Industries subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year.
Silver Lake
Silver Lake is having $60 billion AUM and a strong focus on the world’s great tech and tech-enabled opportunities, and Silver Lake is the global leader in large-scale technology investing. Its mission is to build and grow great companies by partnering with world-class management teams. Its other investments have included Airbnb, Alibaba, Alphabet’s Verily and Waymo units, Dell Technologies, Twitter, and numerous other global technology leaders.
UnlistedZone View
The timely buy of Future Group has increased the valuation of Reliance Retail from 3.6 Lakh Crores last month to 4.21 Lakh Crores today. This is just the beginning. We will see a flurry of investors investing in retail business in the next 1-2 months. The valuation may go up, similar to what we have seen in the case of JIO.
The Reliance Retail at ~4.21 Lakh Crores of valuation and with total equity of ~498 Crores, the per-share value comes out at ~850 per share.
Generally, such big investors when enters in the company then they always look for multi-bagger returns on their investment. If Reliance Retail performs well, big value unlocking will happen in the next 2-3 years for Reliance Retail shareholders.