Reliance Industries Ltd (RIL) has presented all thirteen financial and strategic investors of Jio Platforms the option to invest in its Reliance Retail Ventures Ltd (RRVL) unit, people aware about the developments said.

These investors, encompass Facebook, Google, KKR, Silver Lake and TPG. They helped RIL amass a complete of ₹1.52 trillion in the past few months through selecting up a combined 33% stake in its virtual unit, Jio Platforms.

With foreign direct funding in multi-brand retailing barred in India, strategic and monetary investors can assist RIL enhance funds to develop its retail commercial enterprise and additionally support efforts to trim debt.

RRVL also can tap technology giants including Facebook and Google to catapult its retail business and tackle competition from Amazon and Walmart in India’s on-line retail market at a time while the coronavirus pandemic has disrupted supply chains and hit income at retail stores.

“Reliance Retail may follow the Jio Platforms model, onboarding multiple investors by selling stakes in the firm,” said a senior retail consultant, aware of the talks.

Arvind Singhal, chairman at Technopak Advisors, said: “Reliance Retail cannot partner with a retailer for the deal due to FDI restrictions. So, it can only look for a financial or strategic investor like it did for Jio Platforms.”

Mukesh Ambani, RIL’s chairman and managing director, last month stated that Reliance Retail will induct international companions and investors into the agency in the following few quarters.

According to RIL’s annual report, the agency’s gross debt at the end of the remaining fiscal stood at ₹3.36 trillion. This included ₹4,618 crore of Reliance Retail.

Responding to emailed queries, a spokesperson for Reliance Retail Ltd stated, “As a policy, we do not comment on media speculation and rumours.”

“Our company evaluates various opportunities on an ongoing basis,” the spokesperson stated, adding that the organization will make disclosures, whenever necessary, in compliance with its list obligations.

On Thursday, the Financial Times mentioned that personal equity company Silver Lake is in talks to invest $1 billion in Reliance Retail Ltd (RRL) for a 10% stake at an organization valuation of $57 billion.

Silver Lake had in advance picked up a 2.08% stake for $1.34 billion in Jio Platforms.

RIL operates its retail business thru unit Reliance Retail Ventures, the holding agency for Reliance Retail Ltd and Reliance Brands. The latter operates joint ventures with international brands.

Analysts, however, are divided at the valuation of Reliance Retail.

“If RRL is valued at $57 billion and includes JioMart, this would be underwhelming versus our valuation. We value RRL and JioMart at $65 billion,” JP Morgan said in a report on Friday.

It stated that though a stake sale will add balance sheet flexibility, the important thing will be whether or not RRL is able to appeal to strategic investors (international shops and e-commerce organizations which are presently competing with RRL in India), that might pressure re-rating on expectations of reduced opposition for the agency.