Reliance Industries Ltd, led by Mukesh Ambani, on Tuesday said that a subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest ₹5,512.50 crore for 1.2% stake in its retail arm. “This investment values Reliance Retail Ventures Ltd (RRVL) at a pre-money equity value of ₹ 4.285 lakh crore. ADIA’s investment will translate into a 1.2% equity stake in RRVL on a fully diluted basis,” the company said in regulatory filing.
With this investment, RRVL has raised ₹ 37,710 crore from seven global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA.
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.
Commenting on the investment, Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA said, “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.”
He further added, “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.”
Mukesh Ambani, chairman and managing director of Reliance Industries 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.”
“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,” Ambani added.
Last week, Abu Dhabi-based sovereign wealth fund Mubadala picked up 1.4 % stake in RRVL for ₹6,247.5 crore, the company said in a statement.
Spread across the country, Reliance Retail Limited a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business. It is serving close to 640 million footfalls across 12,000 stores in India, the company said.
“Reliance Retail, through its New Commerce strategy, has started a transformational digitalization of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants. This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers,” the company further added.
RRVL reported a consolidated turnover of ₹ 162,936 crore and net profit of ₹ 5,448 crore for the year ended March 31, 2020.
