The share price of Reliance Industries jumped around 4 percent on Wednesday after it announced that Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.5 crore in the company's retail arm.
This fund infusion is the seventh investment in Reliance Retail in the recent weeks. Earlier, ADIA had invested Rs 5,683.50 crore for a 1.16 percent stake in Jio Platforms.
RIL stock was the biggest contributor on Nifty as well as Sensex, up as much as 3.9 percent to Rs 2,296 per share on BSE post the announcement. It has jumped over 50 percent in 2020 on the back of various investments in its digital arm and now the retail arm.
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.
Till now, 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, "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."
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