Reliance Industries Ltd, led by Mukesh Ambani, said Tuesday that a subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest ₹Rs 5,512.50 crore for a 1.2% stake in its retail arm. “This investment values Reliance Retail Ventures Ltd (RRVL) at a pre-money equity value of ₹ 4,285 million lakh rupees. ADIA’s investment will translate into a 1.2% equity stake in RRVL on a fully diluted basis, “the company said in the regulatory filing.
With this investment, RRVL has raised ₹ Rs 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 Abu Dhabi Government through a strategy focused on creating long-term value.
Commenting on the investment, Hamad Shahwan Aldhaheri, Executive Director of ADIA’s Private Securities Department, said: “Reliance Retail has quickly established itself as one of the leading retail companies in India and, by leveraging its physical and digital supply chains, it is 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 consumer-driven growth and rapid technological advancement.”
Mukesh Ambani, President and Managing Director of Reliance Industries, said: “ADIA’s investment is further endorsement of the performance and potential of Reliance Retail and the inclusive and transformative New Commerce business model that it is implementing.”
“We are delighted with ADIA’s current investment and continued support and look forward to benefiting from its strong track record of more than four decades of global value creation,” Ambani added.
Last week, Abu Dhabi-based sovereign wealth fund Mubadala collected a 1.4% stake in RRVL for ₹6,247.5 million rupees, the company said in a statement.
Distributed throughout the country, Reliance Retail Limited, a subsidiary of RRVL, operates the largest, fastest growing and most profitable retail business in India. It serves about 640 million visitors in 12,000 stores in India, the company said.
“Reliance Retail, through its New Commerce strategy, has initiated a transformative digitization of small and unorganized merchants and is committed to expanding the network to more than 20 million of these merchants. This will enable merchants to use technological tools and an efficient supply chain infrastructure to deliver a superior value proposition to its own customers, “the company added.
RRVL reported consolidated billing of ₹ Rs 162,936 crore and net profit of ₹ Rs 5,448 crore for the year ended March 31, 2020.
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