Reliance Retail targets fund raise through InvIT

Reliance (RIL) is doing everything that one could possible imagine. Whether it’s fund raises or businesses, it’s everywhere.

Now it’s subsidiary Reliance Retail Ventures (RRVL) has filed a document with SEBI to raise funds through the InvIT route. (This is the fourth InvIT from Reliance following it’s infrastructure trusts in gas pipelines, Jio telecom towers and fibre optic cable network)

  • The new InvIT will house the warehousing and related logistics assets of the retail business
    • The portfolio of assets will comprise 64 warehouses spread across 34 cities across India including key warehousing markets such as Delhi NCR, Mumbai, Bengaluru, Chennai, Kolkata, Ahmedabad, Pune and Hyderabad. Each of the target warehous has an area of more than 100,000 square foot and an investment of more than Rs25 crore.
  • RRVL will hold a minimum of 25% units of the InvIT and balance will be sold to the incoming investors
  • Target is to raise Rs 3,048 cr
    • Proposed utilisation of funds
      • Rs 100 cr will be used for acquiring equity shares of a SPV created to hold the warehousing assets
      • Rs 2,928 crore will be used to provide a loan to the SPV for acquisition of the assets.
    • Additionally, the trust has also entered into a lending agreement with Sikka Ports and Terminals Ltd, a Reliance group entity, to avail a rupee term loan of Rs 2,122 cr, which will also be utilised towards acquisition of the assets.
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