Qatar Investment Authority To Acquire 0.99% Stake In Reliance Retail For Rs 8,278 Crore

Reliance Retail, along with it’s subsidiaries and associates, supervises the largest retail business in the country with more than 18,500 stores spread across the nation. 

In 2020, the company raised Rs 47,265 crore from global private equity funds for an almost 10 per cent stake.

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Reliance Industries announced on Wednesday that Qatar Investment Authority (QIA) will invest Rs 8,278 crore in the company’s retail arm. The Mukesh Ambani-owned company stated that QIA will be investing in the company’s retail arm, Reliance Retail Ventures Limited (RRVL).

According to a PTI report, the investment will give QIA ownership of 0.99 per cent in RRVL on a full-diluted basis. Reliance Retail, along with it’s subsidiaries and associates, supervises the largest retail business in the country with more than 18,500 stores spread across the nation. 

Commenting on the investment, RRVL Director Isha Ambani said, “We are delighted to welcome QIA as an investor in Reliance Retail Ventures Ltd. We look forward to benefitting from QIA's global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world-class institution, driving transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards Indian economy and Reliance's retail business model, strategy, and execution capabilities.”

QIA’s CEO Mansoor Ebrahim Al-Mahmoud added, “ QIA is committed to supporting innovative companies with high-growth potential in India's fast-growing retail market. We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India.”

Reliance Retail has been focused on expanding it’s business in the last few years. In 2020, the company raised Rs 47,265 crore from global private equity funds for an almost 10 per cent stake. This was the largest fundraising activity in the retail sector at the time.

Notably, last month on July 4, the company’s board authorised a proposal under which shares held by minority shareholders ‘shall stand cancelled and extinguished’ according to the capital reduction plan. This move allowed the company to buyback these shares and transform itself into a fully promoter-owned company.