 "Reliance, Reliance Industries")
Qatar Investment Authority (QIA) will invest Rs 8,278 crore ($1 billion) in Reliance Retail Ventures Ltd (RRVL), the retail
arm of Mukesh Ambani-led Reliance Industries, for a 0.99 per cent stake on a fully diluted basis.
The investment, through a wholly owned subsidiary of QIA, will be made at a valuation of Rs 8.28 trillion ($100 billion), according to a release by RRVL.
In 2020, RRVL had raised Rs 47,265 crore from top global investors, including Silver Lake, GIC, PIF, KKR, Mubadala, General Atlantic, Abu Dhabi Investment Authority, TPG for a 10.09 per cent stake at a pre-money equity value of Rs 4.21 trillion, the company said.
Morgan Stanley acted as financial adviser to RRVL, while Goldman Sachs advised RIL on the process and
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transaction structuring.
Isha Mukesh Ambani, director at RRVL, said, “We look forward to benefitting from QIA’s global experience and strong track record of value creation…The investment by QIA is a strong endorsement of a positive outlook towards the Indian economy and Reliance’s retail business model, strategy and execution capabilities.”
RRVL, through its subsidiaries and associates, operates India’s largest retail business with a customer base of 267 million and an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
Mansoor Ebrahim Al-Mahmoud, CEO, QIA, said, “QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market.”
RRVL reported a consolidated turnover of Rs 2.6 trillion ($ 31.7 billion) and net profit of Rs 9,181 crore ($1.1 billion) in FY23.
