General Atlantic to invest $498.31 million in Reliance’s retail arm

General Atlantic to invest $498.31 million in Reliance’s retail arm

India's Reliance Industries Ltd said on Wednesday private equity firm General Atlantic will invest 36.75 billion rupees ($498.31 million) for a 0.84 per cent stake in its retail arm, sending shares of the country's most valuable company up as much as 1 per cent.

The deal underscores growing investor interest in the Mukesh Ambani-led company's expansion plans as it diversifies from its mainstay oil-and-gas business. Reliance is being seen as a formidable rival to Amazon.com Inc and Walmart Inc's Flipkart as they battle for market dominance in India.

Wednesday's investment gives Reliance Retail a pre-money valuation of 4.29 trillion rupees ($58.17 billion), the company said.

Reliance, which in May launched an online grocery service, also operates around 12,000 brick and mortar stores.

Chairman Mukesh Ambani