By P.R. Venkat
U.S. private-equity firm General Atlantic LLC is planning to invest 36.75 billion rupees ($498.2 million) in the retail venture of Indian conglomerate Reliance Industries Ltd.
The investment will translate into a 0.84% stake in Reliance Retail Ventures Ltd., valuing the company at INR4.29 trillion pre-money, Reliance Industries said Wednesday.
Foreign companies have been investing heavily in various Reliance Industries businesses such as its retail and telecommunications operations.
Last week another private-equity firm, KKR & Co., said it would invest nearly $754.9 million in Reliance's retail unit. Silver Lake has already invested $1.02 billion.
General Atlantic's investment is its second in a Reliance Industries subsidiary following a INR65.98 billion investment in telecom unit Jio Platforms Ltd.
Earlier this year, companies like Facebook Inc., Vista Equity Partners, KKR & Co. and Saudi Arabia's sovereign wealth fund, the Public Investment Fund, poured billions of dollars into the telecommunications unit.
"Like Reliance Retail, General Atlantic believes in the fundamental ability of digital enablement to drive progress, growth, and inclusion across India and the world," Reliance Industries Chairman Mukesh Ambani said.
Reliance Retail operates India's largest and fastest-growing retail business, with close to 640 million footfalls across its more than 12,000 stores nationwide.
Morgan Stanley acted as Reliance Retail's financial adviser.
Write to P.R. Venkat at email@example.com