Abu Dhabi Investment Authority is set to invest Rs 4,966.80 crore into Reliance Retail Ventures, acquiring a 0.59 per cent stake in the company, as confirmed by Reliance Industries on Friday.
In a regulatory filing, Reliance Industries stated, “This investment values RRVL at a pre-money equity value of Rs 8.381 lakh crore (USD 100.83 billion), which makes it among the top four companies by equity value in the country.”
The wholly-owned subsidiary of Abu Dhabi Investment Authority’s investment will result in an equity stake of 0.59 per cent in Reliance Retail Ventures Limited on a fully diluted basis.
RRVL, the holding company of Reliance Industries’ retail business, operates an integrated omnichannel network of over 18,500 stores and digital commerce platforms across various consumption baskets, including grocery, consumer electronics, fashion & lifestyle, and pharma.
Isha Mukesh Ambani, Executive Director of RRVL said, “We are pleased to further deepen our relationship with ADIA with their continued support as an investor in RRVL. Their long-standing experience of over decades of value creation globally will further benefit us in implementing our vision and driving the transformation of the Indian retail sector.”
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA said, “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. We are pleased to partner with the Reliance Group, and increase our exposure to India’s dynamic and fast-growing consumer sector”.
In 2020, RRVL raised Rs 47,265 crore from global private equity funds, including ADIA, for a 10.09 per cent stake.
The company’s valuation exceeded Rs 4.2 lakh crore at that time. Reliance Retail has been aggressively expanding, acquiring companies, securing franchise rights of international brands, and investing in infrastructure. The recent investment by ADIA reaffirms their confidence in the Indian economy and Reliance Retail’s business fundamentals, strategy, and execution capabilities.
