Saudi Arabia’s Public Investment Fund (PIF) is investing Rs 9,555 crore ($1.3 billion) for 2.04 per cent in Reliance Retail Ventures (RRVL), the retail arm of Reliance Industries (RIL).
With this funding, RRVL has mobilised Rs 47,265 crore from global investors such as Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA. These investors had also acquired stakes in Jio Platforms — the digital services subsidiary of RIL. PIF had acquired a 2.32 per cent stake in Jio Platforms for Rs 11,367 crore.
The investment by PIF in RRVL values it at a pre-money equity value of Rs 4.587 lakh crore ($62.4 billion). This is 7 per cent higher than the valuation of Rs 4.285 lakh crore for the other investors. All of them have so far cumulatively picked up 10.54 per cent in RRVL.
The announcement, which did not come as a surprise, was made after the market hours. Earlier, the RIL scrip settled with gains of around 2.18 per cent or Rs 41.65 at Rs 1,955.10 on the BSE.
A statement from RIL said the investment will strengthen PIF’s presence in India’s economy and in the promising retail market segment.The transaction is in line with PIF’s strategy to invest in innovative and transformative companies globally and develop strong partnerships with leading groups in their respective markets, the statement said.
“We have a long-standing relationship with Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Reliance Retail,” said Mukesh Ambani, chairman and managing director of RIL.
