Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.5 crore in Reliance Industries Ltd's retail arm, Reliance Retail Ventures Limited (RRVL), the Indian firm said in a statement on Tuesday.
This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. ADIA’s investment will translate into a 1.20 percent equity stake in RRVL on a fully diluted basis.
With this investment, RRVL has raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG, and ADIA in less than four weeks.
Mukesh Ambani, chairman and managing director of RIL said, said, "We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally. The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational New Commerce business model that it is rolling out."
Hamad Shahwan Aldhaheri, executive director of the Private Equities Department at ADIA, said, “Reliance Retail has rapidly established itself as one of the leading retail businesses in India and, by leveraging both its physical and digital supply chains, is strongly positioned for further growth. This investment is consistent with our strategy of investing in market-leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement."
On October 3, Singapore's sovereign wealth fund GIC said it will invest Rs 5,512.5 crore to buy 1.22 percent share in RRVL. On October 1, Abu Dhabi-based sovereign wealth fund Mubadala Investment Co said it invest Rs 6,247.5 crore to buy a 1.4 percent stake in its retail arm.
Also, global private equity firm General Atlantic had picked up a 0.84 percent stake in the company for Rs 3,675 crore. US PE investor Silver Lake made a second investment of Rs 1,875 crore, taking its total fund infusion in Reliance Retail to Rs 9,375 crore for a 2.13 percent stake.
(Edited by: By Jomy)
First Published: IST