This marks the second investment by General Atlantic
in a subsidiary of RIL, following an Rs 6,598.38 crore-investment in Jio Platforms announced earlier this year.
Last week, private equity (PE) firm KKR said it would invest Rs 5,550 crore in RIL's subsidiary Reliance Retail
for a 1.28 per cent stake. Earlier, US-based PE firm Silver Lake had announced that it would invest Rs 7,500 crore in the retail firm for a 1.75 per cent stake.
RRVL is a subsidiary of RIL, and holding company of all the retail companies under the RIL Group. It reported a consolidated turnover of Rs 162,936 crore ($ 21.7 billion) and net profit of Rs 5,448 crore ($ 726.4 million) for the year ended March 31, 2020.
The stock of RIL has outperformed the Sensex over the past three months on the back of the company's significant deleveraging record, and ability to get on-board new investors and partners in the Digital Services business, setting a new benchmark valuation.
"Long term, we continue to like RIL's business and balance sheet, and believe all three of its core businesses – O2C, Retail and Digital Services – have become self-sustaining and cash generating, with Retail and Digital Services on a high growth path," analysts at HSBC Global Research said in recent note.
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