Reliance’s share price traded flat on Tuesday morning even as the company’s retail arm announced a major investment.
What Happened: The company’s subsidiary Reliance Retail late on Monday announced that U.S.-based private equity firm KKR will be investing ₹2,069.50 crore at a valuation of ₹8.361 lakh crore. KKR's investment comes primarily from its Asian Fund IV.
The fresh investment will see KKR’s stake in the retail giant go up to 1.42%. The firm in 2020, had invested ₹5,550 crore in Reliance Retail in 2020 at a valuation of ₹4.21 lakh crore. Media reports earlier this month had suggested that the company was looking to raise more funds.
As per reports, the company is in advanced talks with global investors to raise an estimated $2.5 billion (around ₹21,000 crore).
The new investment comes just weeks after Qatar Investment Authority pumped ₹8,278 crore into Reliance Retail Ventures at a valuation of ₹8.278 lakh crore to secure a 1% stake.
Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.
Price Action: Reliance’s share price was down 0.034% to trade at ₹2,473.75 at market open on Tuesday.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.