Shares of Reliance Industries surged as much as 3 percent on Wednesday after KKR said that it will invest Rs 5,550 crore for 1.28 percent stake in Reliance Retail.

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The stock rose as much as 2.94 percent to Rs 2,276.20 per share on the NSE. At 3:30 pm, the shares ended 0.76 percent higher to Rs 2,228..

This is the second deal in two weeks. On September 9, private equity giant Silver Lake Partners also said that it will invest Rs 7,500 crore in Reliance Retail for a 1.75 percent stake.

The KKR deal values Reliance Retail at a pre-money equity value of Rs 4.21 lakh crore, said the company's exchange filing.

This is the second investment by KKR in a subsidiary of Reliance Industries. It had earlier announced a Rs 11,367-crore investment in Jio Platforms.

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Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am pleased to welcome KKR as an investor in Reliance Retail Ventures as we continue our onward march to growing and transforming the Indian Retail ecosystem for the benefit of all Indians.”

The latest investment by KKR, which has a long history of building leading global enterprises, is viewed as an endorsement of Reliance Retail's ability to lead a transformation of the Indian retail sector through technological innovations.

Henry Kravis, Co-Founder and Co-CEO of KKR, said, “Reliance Retail’s new commerce platform is filling an important need for both consumers and small businesses as more Indian consumers move to shopping online and the company offers tools for Kiranas to be a critical part of the value chain. We are thrilled to support Reliance Retail in its mission to become India’s leading omnichannel retailer and ultimately to build a more inclusive Indian retail economy.”

Last month, Reliance Retail had announced the acquisition of the retail and logistics businesses of Kishore Biyani’s Future Group in $3.38 billion deal, including debt.

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(Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)

First Published:Sept 23, 2020 9:38 AM IST