Reliance Industries (RIL) and Reliance Retail Ventures (RRVL) announced that a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.50 crore into RRVL, a subsidiary of RIL.
The announcement was made after market hours yesterday, 6 October 2020. Shares of RIL shed 0.05% to settle at Rs 2,210.15 yesterday.
This investment values RRVL at a pre-money equity value of ₹ 4.285 lakh crore. ADIA's investment will translate into a 1.20% 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. The transaction is subject to regulatory and other customary approvals.
Reliance Retail, a subsidiary of RRVL, operates India's largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its ~12,000 stores nationwide. RRVL is a subsidiary of RIL, and holding company of all the retail companies under the RIL Group.
Established in 1976, ADIA is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on longterm value creation.
Mukesh Ambani, Chairman and Managing Director of RIL, said, 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.
RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
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