A wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA) is investing Rs 4,966.80 crore in Reliance Retail Ventures Ltd (RRVL), the organised retail subsidiary of Reliance Industries Ltd (RIL).
A late evening statement from Reliance said the latest investment values RRVL at a pre-money equity value of Rs 8.381 lakh crore, which makes it among the top four companies by equity value in the country.
The investment by ADIA will translate into an equity stake of 0.59 per cent in RRVL on a fully-diluted basis.
It comes nearly a month after private equity major KKR invested an additional Rs 2,069.50 crore in RRVL for a valuation of Rs 8.361 lakh crore.
KKR’s follow-on investment resulted in the global investment firm getting another 0.25 per cent in RRVL.
This, coupled to its stake resulting from the investment of Rs 5,550 crore in RRVL in 2020, took its total equity stake in the company to 1.42 per cent.
Before this transaction, Qatar Investment Authority (QIA), had invested Rs 8,278 crore to acquire nearly one per cent in RRVL. It had valued the retail subsidiary of RIL at Rs 8.278 lakh crore.
“We are pleased to further deepen our relationship with ADIA with their continued support as an investor in
Reliance Retail Ventures
Limited. Their long-standing experience of over decades of value creation globally will further benefit us in implementing our vision and driving transformation of the Indian retail sector,” Isha Mukesh Ambani, executive director, RRVL, said.
“ADIA’s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy and execution capabilities.’’
The previous fund-raise round by RRVL in 2020 from various global investors was for an aggregate amount of Rs 47,265 crore and it was done at a pre-money equity value of Rs 4.21 lakh crore.
“Reliance Retail has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace.
“This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end-markets, Hamad Shahwan Aldhaheri, executive director of the private equities department, ADIA, said.
