Reliance Industries Ltd. said Thursday that the Public Investment Fund (PIF) will invest ₹ Rs 9,555 crore for a 2.04% equity interest in Reliance Retail Ventures Limited. This investment values RRVL at a pre-money equity value of ₹ 4,587 million lakh rupees. “This investment will further strengthen PIF’s presence in India’s dynamic economy and in the promising retail market segment,” the Mukesh Ambani-led company said in a statement.
“The transaction is in line with PIF’s strategy as a leading global investor with a proven track record of investing in innovative and transformative companies globally and developing strong partnerships with leading groups in their respective markets,” said Reliance Industries.
PIF previously acquired a 2.32% stake in Jio Platforms, Reliance Industries’ digital services subsidiary. PIF is one of the largest sovereign wealth funds in the world. It works together with renowned global strategic partners and investment managers, and acts as the primary investment arm of the Kingdom of Saudi Arabia with the aim of generating long-term value for the Kingdom of Saudi Arabia in accordance with Vision 2030.
India’s retail sector is one of the largest in the world, accounting for over 10% of its gross domestic product (GDP), which presents significant growth potential.
Commenting on the deal, Mukesh Ambani, President and Managing Director of Reliance Industries, said: “I welcome PIF as a valued partner in Reliance Retail and look forward to your continued support and guidance as we continue our ambitious journey to transform the retail sector of India to enrich the lives of 1.3 billion Indians and millions of small merchants. “
Yasir Al-Rumayyan, Governor of PIF, said: “We are pleased to promote our trusted partnership with Reliance Industries, the leading player in some of the most exciting sectors in India. This transaction demonstrates PIF’s commitment to investing and partnering for long term with innovative companies from around the world that lead and transform their sectors. “
“This investment further demonstrates PIF’s commitment to generating returns for the Saudi people and driving the economic diversification of Saudi Arabia,” he added.
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 offer a superior value proposition to its own customers, “the company added.
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