MUMBAI: Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar, will invest Rs 8,278 crore in Reliance Retail Ventures (RRVL), the retail arm of Reliance Industries, to acquire a 0.99% stake. The investment will value RRVL, the country’s largest retailer, at Rs 8.28 lakh crore.
In 2020, RRVL raised Rs 47,265 crore from global private equity funds for a 10.09% stake, valuing the firm at over Rs 4.21 lakh crore. This was the largest fundraising exercise in the sector at that time. The company had raised funds from Silver Lake, KKR, Mubadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic and Saudi Arabia’s Public Investment Fund at a valuation of about $57 billion at that time.
“We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop RRVL into a world-class institution, driving the transformation of the Indian retail sector,” said Isha Mukesh Ambani, director, of RRVL. “The investment by QIA is a strong endorsement of a positive outlook towards the Indian economy and Reliance’s retail business model, strategy and execution capabilities,” she added. RRVL operates the retail business with a customer base of 267 million and an omnichannel network of over 18,500 stores and digital commerce platforms.
The deal comes as the Mukesh Ambani-led Group is considering a public listing for RRVL and has started buying back shares in the unit and giving them to their employees as stock options. RRVL is expanding its business here by acquiring companies and getting franchise rights of leading global brands for the Indian market.
Its board had on July 4, 2023, approved a proposal in which shares held by such shareholders shall stand cancelled and extinguished as per the capital reduction plan. QIA will make the investment via its wholly-owned subsidiary. “QIA is committed to supporting innovative companies with growth potential in India’s fast-growing retail market. We are looking forward to RRVL, with its strong vision and growth trajectory, joining our growing and divers,” said Mansoor Ebrahim Al Mahmoud, CEO of QIA.
Funding boost for Reliance Retail
Transaction values RRVL among the top 4 companies by total equity value
The investment values RRVL at a pre-money equity value of Rs 8.28 l cr
IT raised Rs 47,625 cr from global investors in 2020
Previous fund-raising in 2020 was done at a pre-money equity value of Rs 4.21 l cr