Abu Dhabi-based sovereign wealth fund Mubadala acquired a 1.4% stake in Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries Limited, for ₹6,247.5 million rupees, the company said in a statement.
The investment values Reliance Retail at a pre-money equity value of ₹ 4,285 million lakh rupees. “Mubadala’s investment will translate into a 1.40% equity interest in RRVL on a fully diluted basis,” RIL stated in its regulatory filing.
This is Mubadala’s second significant investment in a Reliance Industries subsidiary after the $ 1.2 billion investment in Jio Platforms announced earlier this year.
Reliance Retail Limited, a subsidiary of RRVL, operates the fastest growing and most profitable retail business in India, with nearly 640 million visitors to its approximately 12,000 stores across the country.
Commenting on the investment, Mukesh Ambani, President and CEO of Reliance Industries, said: “I am pleased to welcome Mubadala as a valued investor in Reliance Retail Ventures. We value partnering with a knowledge-rich organization like Mubadala and recognize your confidence in our mission to strengthen the core of India’s retail sector, the millions of small retailers, traders and grocers, through the power of technology. Mubadala’s investment and guidance will be an invaluable support on this journey. “
Khaldoon Al Mubarak, Group Managing Director and Chief Executive Officer, Mubadala Investment Company, said: “We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures. His vision is the inclusive transformation of the consumer economy of the India through the power of digitization, creating opportunity and market access for millions of small businesses across the country, and we are committed to supporting the continued development of the company. “
Mubadala is the second largest state investor in Abu Dhabi after the Abu Dhabi Investment Authority, managing around $ 240 billion in assets.
The transaction is subject to customary and regulatory approvals.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal advisors.
This is check number five for Reliance Retail after the Silver Lake add-on. ₹1,875 crore and earlier ₹Rs 7.5 billion investment for 1.75% stake, KKR’s ₹Rs 5,550 crore investment for 1.28% stake and General Atlantic ₹Rs 3,675 million investment for a 0.84% stake.
Ambani’s push to seek investment in its retail business comes as the Indian oil-to-telecom conglomerate has been looking to expand its e-commerce operations to compete against Walmart’s Flipkart and Amazon.com’s Indian business.
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