Saudi Arabia's PIF Signs Another Cheque For Reliance, This Time Rs 9555 Crore For The Retail Arm

While most industrialists are busy restructuring their loans due to the challenges of the COVID-19, Mukesh Ambani is busy minting money by selling stakes in various businesses to global investors.

(File Photo/ Getty)

New Delhi: The year 2020 has been a challenging year for most industrialists due to the COVID-19 pandemic, leading to lockdowns and a cascading effect on the economy, leading to job losses worldwide. But it's not right for Mukesh Ambani, chairman of Reliance Industries (RIL), which has raised about Rs three-lakh crore this year and is in talks to raise another Rs two-lakh crore by selling stakes in its retail arm and oil-to-chemicals (O-2-C) business by the end of this fiscal. While most industrialists are busy restructuring their loans due to the challenges of the COVID-19, Mukesh Ambani is busy minting money by selling stakes in various businesses to global investors. On Thursday, Saudi Arabis's Public Investment Fund (PIF) issued another cheque of Rs 9555 crore ($1.3 billion), this time for buying a 2.04% stake in its retail arm, Reliance Retail Ventures Limited (RRVL), valuing the company at Rs 4.587 lakh crore (approximately $62.4 billion). In June, Saudi Arabia's sovereign wealth fund has invested Rs 11,367 crore in buying a 2.32% stake in RIL's digital arm Jio Platforms Limited (JPL), to strengthen PIF's presence in India's dynamic economy. Commenting on the new investment, Mr. Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, "We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India's retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants." Within three months during lockdown between April 22, 2020, and July 15, 2020, RIL's digital arm, Jio Platforms, has raised over Rs 1,52,000 crore by selling a 33% stake to 13 global investors. The significant investors included Facebook and Goole as they invested Rs 43,574 crore and Rs 33737 crore. After selling a JPL stake, Mukesh Ambani is on a mission to raise a similar amount for its retail arm, RRVL. With the latest Saudi investment, RRVL has already raised Rs 47,265 crore of investments from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG, ADIA, and PIF by diluting a 10.5% stake. Analysts believe RRVL could raise about another Rs one lakh crore, in lines with JPL, if had to dilute a 33% stake. Besides, RIL talks with Saudi Aramco, the world's largest oil producer, to sell a 20% stake in its O2C business valued at $15 billion or Rs 1,15,000 crore. The deal announced in last year's RIL AGM is yet to fructify due to the difference in the valuations led by a fall in oil prices. Here is the list of investors invested in Reliance and its affiliates: A. Reliance Retail Ventures Limited (RRVL) Serial No Date Stake Investment Investor 1 Sept 9. 1.75% Rs 7500 cr Silverlake Partners 2. Sept23. 1.28% Rs 5550 cr KKR 3. Sept30 0.84% Rs 3675 cr General Atlantic 4. Sept30 0.38% Rs 1875 cr SilverLake Co-investors 5. Oct.1 1.40% Rs 6247.5 cr Mubadala 6. Oct.2 1.22% Rs 5512.5 cr GIC 7. Oct.2 0.41% Rs 1837.5 cr TPG 8. Oct 6 1.2% Rs 5512.5 cr ADIA 9. Nov 5 2.04% Rs 9555 cr PIF Total 2 Months 10.52% Rs 47,265 cr 9 investors B. Jio Platforms Limited (JPL) Sr No Date Stake Investment Investor 1. April. 22 9.99% Rs 43,573.62 Facebook, Inc. 2. May 4. 1.15% Rs 5,655.75 Silver Lake Partners 3. May 8. 2.32 Rs 11,367.00 Vista Equity Partners 4. May 17 1.34% Rs 6,598.38 General Atlantic 5. May 22. 2.32% Rs11,367.00 KKR 6. June 5 1.85% Rs 9,093.60 Mubadala 7. June 5. 0.93% Rs 4,546.80 Silver Lake (Additional) 8. June 7. 1.16% Rs 5,683.50 ADIA 9. June 13. 0.93% Rs 4,546.80 TPG 10. June13. 0.39% Rs 1,894.50 L Catterton 11. June 18. 2.32% Rs11,367.00 PIF 12. July 3 0.39% Rs 1894.5 Intel 13. July 12. 0.15% Rs 730 cr Qualcomm 14. July15. 7.73% Rs 33737 cr Google Total (3 months)` 33% Rs 152,056 (13) C. Others Sr. No Day Stake Investment Company Investor 1. July2020 49% Rs 7629 cr RBML BP PLc. 2 June 2020 N/A Rs 53,124 cr (Rights) RIL Retail 3.Oct 2020 51% Rs 7558 cr FiberInvit ADIA/PIF. 4. Oct 2020 49% Rs 25,215 cr TowerInvit Brookfield Total - JPL – Rs 1,52,056 - Retail –Rs 47,265 - Rights –Rs 53,124 - Invits - Rs 32,773 - RBML - Rs 7629 - Total Rs 2,92,847 crore + Saudi Aramco Rs 1,15,000 crore +(Retail stake yet to be monetised) Rs 1,00,000 crore Grand Total Rs 5,07,847 crore