NEW DELHI: Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.5 crore in Reliance Industries Ltd’s retail arm, Reliance Retail Ventures Limited (RRVL)through a wholly owned subsidiary, the Indian firm said in a statement on Tuesday.
This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. ADIA’s investment will translate into a 1.20% equity stake in RRVL on a fully diluted basis. ADIA is a global investment fund that invests on behalf of the Government of Abu Dhabi.
With this investment, RRVL has raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks. Hamad Shahwan Aldhaheri, executive director of the Private Equities Department at ADIA, said, “this investment is consistent with our strategy of investing in market-leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement.” While Mukesh Ambani, chairman and managing director of RIL said, said, “We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record.” Reliance, which has about 12,000 stores, has been on growth spree.