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RIL shares surge nearly 3% on PIF's investment in Reliance Retail

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This is the eighth investment in Reliance Retail in less than two months. 

RIL shares surge nearly 3% on PIF's investment in Reliance Retail
The share price of Reliance Industries surged nearly 3 percent on Friday after Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) said it will invest Rs 9,555 crore, or roughly $1.3 billion, for a 2.04 percent stake in RIL's retail unit Reliance Retail Ventures Limited (RRVL).
At 9:50 am, the shares traded 2.7 percent higher at Rs 2,008.90 per share on the NSE. This is the eighth investment in Reliance Retail in less than two months.
This is PIF's second investment in a Reliance Industries arm, having earlier picked up a 2.32 percent stake in Jio Platforms, the digital services subsidiary of RIL.
The company has so far sold a little over 10 percent in RRVL for a combined Rs 47,265 crore.
Investors such as Singapore's sovereign wealth fund GIC, global alternative asset firm TPG, Abu Dhabi Investment Authority, Mubadala Investment Co, General Atlantic, KKR and Silver Lake (in two tranches) have already purchased stakes in the company.
This fund raising by RIL is a strategy to expand its retail business and take on rivals such as Amazon India and Walmart-owned Flipkart in India’s huge market.
(Disclosure: RIL, the promoter of Reliance Retail, also controls Network18, the parent company of CNBCTV18.com.)