Reliance Retail In Talks With Global Investors To Raise $2.5 Billion By September-End: Report

The target fund raise of $2.5 billion is part of a combined $3.5 billion target Reliance Retail has set for itself, a part of which, $1 billion, came from QIA and was announced last month

Reliance said it raised $1 billion from QIA at a $100 billion valuation for India's biggest retailer whose operations stretch from selling groceries to electronics, and include foreign partnerships with brands like Burberry and Pret A Manger.

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Ahead of a potential stock market listing, Reliance Industries Chairman Mukesh Ambani's Reliance Retail Ventures is in advanced talks with global investors to raise around $2.5 billion by the end of September, citing sources privy to the development news agency Reuters said. According to the report, the target fund raise of $2.5 billion is part of a combined $3.5 billion target the firm has set for itself, a part of which, $1 billion, came from Qatar Investment Authority (QIA) and was announced last month.

Last month, Reliance had said it raised $1 billion from QIA at a $100 billion valuation for India's biggest retailer whose operations stretch from selling groceries to electronics, and include foreign partnerships with brands like Burberry and Pret A Manger.

In an emailed statement, Reliance said "As a policy, we do not comment on media speculation and rumours.", but added "Our company evaluates various opportunities on an ongoing basis."

Morgan Stanley is advising Reliance on the process, said two sources with direct knowledge. Morgan Stanley, however, did not respond to Reuter's request for comment.

All the three sources declined to name potential investors. But the first source said Reliance was talking to at least two US-based investors, while the other two sources said there was growing interest from existing foreign investors of Reliance, including some sovereign wealth funds.

The investment, if it materialises, will bolster India's status as a rare bright spot for Western private investors who are shying away from new investments in China due to the country's worsening economic outlook and geopolitical tensions. In 2020, Reliance Retail raised $5.71 billion by selling a 10.09 per cent stake to investors including KKR, the Saudi Public Investment Fund, General Atlantic and the United Arab Emirates' Mubadala.

During the last RIL AGM on August 28, Ambani said Reliance Retail is expanding its business is the "fastest growing" company. "I am confident that as India grows from a $2,500 per-capita economy to a $10,000 per-capita economy, Reliance Retail will be our fastest growing business in revenues and EBITDA," he said.

In its latest annual report, RIL had said Reliance Retail had achieved a significant milestone of crossing a billion transactions and its registered user base has grown to 249 million. In FY23, Reliance Retail's digital commerce and new commerce businesses contributed to 18 per cent of its revenue, which stood at Rs 2.60 lakh crore.