Reliance Industries Ltd (RIL) and its retail subsidiary, Reliance Retail Ventures Ltd (RRVL), have completed the current phase of partner induction and fundraise exercise for RRVL, the company said in a press statement today.
“RRVL has received cumulative subscription amount of ₹47,265 crore ($6.3 billion) from the following financial partners and allotted 69,27,81,234 equity shares to them. The respective equity stake in RRVL, on a fully diluted basis,” the company said in its statement.
This is the largest fundraise exercise in the sector completed within two months and all the investments have been completed with receipt of funds & issue of shares. RIL said.
RRVL is the holding company of all the retail companies under the RIL Group.
RRVL reported a consolidated turnover of ₹162,936 crore ($ 21.7 billion) and a net profit of ₹5,448 crore ($ 726.4 million) for the year ended March 31, 2020.
Isha Ambani, Director, RRVL said, “We are proud to have such strong and reputed partners in RRVL. With our focus on new commerce, we are committed to playing a transformational role in the Indian retail sector by empowering millions of merchants and micro, small and medium enterprises.”
Morgan Stanley acted as financial advisor to RRVL and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. BofA Securities, acting as additional financial advisor, advised on the process as well as transaction structuring.
This week RRVL acquired 96% stake in Urban Ladder Home Decor Solutions for a cash consideration of ₹182.12 crore.
RRVL has a further option of acquiring the balance stake, taking its shareholding to 100% of the equity share capital of UrbanLadder. RRVL said it proposes to make a further investment of up to ₹75 crore, which is expected to be completed by December 2023.