Abu Dhabi Investment Authority To Invest Rs 4,966.80 Crore In Reliance Retail For 0.59% Stake

This investment values the retail company at a pre-money equity value of Rs 8.381 lakh crore, making the company among the top four firms by equity value in the country. 

Reliance Industries (RIL) announced on Friday that Abu Dhabi Investment Authority will invest Rs 4,966.80 crore in it’s retail arm, Reliance Retail Ventures Limited (RRVL) for a 0.59 per cent stake in the company. RIL, in it’s regulatory filing, stated that this investment values it’s retail company at a pre-money equity value of Rs 8.381 lakh crore, making the company among the top four firms by equity value in the country. 

The filing further noted that this investment by a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) will give the company an equity stake of 0.59 per cent in the RRVL on a fully diluted basis, reported PTI. Notably, RRVL operates the retail business of Reliance Industries and has a network of more than 18,500 stores and digital commerce platforms spread across grocery, consumer electronics, fashion and lifestyle, and pharmaceutical segments. 

Commenting on the investment, RRVL’s executive director, Isha Ambani, said, “ We are pleased to further deepen our relationship with ADIA with their continued support as an investor in RRVL. Their long-standing experience of decades of value creation globally will further benefit us in implementing our vision and driving the transformation of the Indian retail sector. ADIA's investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy, and execution capabilities.”

Hamad Shahwan Aldhaheri, executive director of the private equities department, ADIA lauded Reliance Retail and said, “Reliance Retail has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace. This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end markets. We are pleased to partner with the Reliance Group, and increase our exposure to India's dynamic and fast-growing consumer sector.”

Earlier in 2020, RRVL raised Rs 47,265 crore from global private equity funds for a 10.09 per cent stake, valuing the company at over Rs 4.2 lakh crore. This turned out to be the largest fundraising campaign in the sector at the time. The company raised funds from Silver Lake, KKR, Mubadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic, and Saudi Arabia’s Public Investment Fund at a valuation of $57 billion.