New Delhi: Reliance Retail Ventures Ltd (RRVL) on Friday said sovereign wealth fund Abu Dhabi Investment Authority (ADIA) will make additional investment. Rs 4,966.80 crore in the retail arm of Reliance Industries Limited after buying 1.18% stake in the company in October 2020.
Fresh investment values RRVL at pre-money equity value 8.38 trillion, it is one of the top four most valuable companies in India.
ADIA’s investment will translate into an equity stake of 0.59% in RRVL on a fully diluted basis, the company said in a statement late on Friday. In 2020, ADIA promised to invest through a wholly owned subsidiary 5,512.50 crore in RRVL.
ADIA’s investment follows that of Qatar Investment Authority (QIA) Investment of Rs 8,278 crore in RRVL in August.
The company has raised a total of Rs 2,000 crore between 2020 and 2021. Rs 47,265 crore from nine global investors, including sovereign wealth fund Mubadala Investment Company, private equity firm General Atlantic, Silver Lake Partners, TPG Capital, Public Investment Fund, GIC, investment firms KKR, ADIA and SLP co-investors. wealth equity value of 4.21 trillion.
Overall, the above investors, including those announced on Friday, now hold 12.88% stake in the company.
RRVL’s business, which spans grocery retail, consumer electronics, apparel, footwear, online commerce and jewellery, has dominated the country’s retail landscape. RRVL, through its subsidiaries and associates, operates an integrated omni-channel network of over 18,500 retail stores and digital commerce platforms.
“We are pleased to further deepen our relationship with ADIA as an investor in Reliance Retail Ventures Limited. His long-standing experience spanning decades of value creation globally will benefit us in implementing our vision and driving the Indian transformation. retail sector. Isha Mukesh Ambani, Executive Director, Reliance Retail Ventures Limited, said, ADIA’s investment in RRVL is a further testament to their confidence in the Indian economy and the fundamentals, strategy and execution capabilities of our business.
RRVL reports consolidated revenue 2.6 trillion and net profit 9,181 crore in FY23. Reliance Retail operates stores in categories such as electronics, fashion apparel, beauty, grocery, footwear, food, jewellery, toys, e-commerce, luxury and lifestyle. Reliance Retail also serves as the main distributor for Jio connectivity services, which are sold through MyJio and a network of digital stores. Its e-commerce platforms include Ajio, Netmeds, Milkbasket and Jiomart. It is the largest retailer in the country.
“Reliance Retail has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace. This investment is in line with our strategy to support our portfolio companies that are driving change in their respective end markets. Hamad Shahwan Aldhaheri, Executive Director, Private Equity Department, ADIA, said, “We are delighted to partner with Reliance Group and enhance our exposure to India’s dynamic and fast-growing consumer sector.
Morgan Stanley acted as financial advisor to Reliance Retail Ventures and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal advisors.
The investment comes as Reliance Industries Ltd is eyeing the public listing of its retail subsidiary. RRVL recently made an aggressive bet to acquire the wholesale business of Metro Cash & Carry in India.
Ambani said in August that “several leading global strategic and financial investors have shown strong interest in his company”.
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