Abu Dhabi Investment Authority to Pick 1.2% Stake in Reliance Retail for INR 5,512 Cr Investment
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Abu Dhabi Investment Authority (ADIA) has announced an investment of INR 5,512. 5 crore in Reliance Industries Limited’s (RIL’s) retail arm Reliance Retail Ventures Limited (RRVL) in return of 1.20 per cent equity stake.
This deal marks ADIA’s second investment in Mukesh Ambani led RIL after it announced INR 5,683.5 crore capital in the company’s digital unit Jio Platforms in June this year.
This fresh capital infusion will value Reliance’s retail subsidiary at INR 4.285 lakh crore.
In the last one month, RRVL, country’s largest retail business, has sold about 8.5 per cent stake in return of a total investment of INR 37,710 crore from global investors Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA.
“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,” said chairman and managing director Ambani.
RRVL operates the country’s largest and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide through its subsidiary Reliance Retail Limited. It reported a consolidated turnover of INR 162,936 crore and net profit of INR 5,448 crore for financial year 2019-2020.
“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,” said Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department, ADIA.