NEW DELHI: Abu Dhabi Investment Authority will invest Rs 4,966 crore in Reliance Retail Ventures (RRVL) for 0.59% additional stake in the company, the retail arm of Reliance Industries said in a statement.
This 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. ADIA had earlier invested Rs 5,512.50 crore into RRVL in 2020 and picked up 1.2% stake in the company.
“We are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures Limited… ADIA’s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy and execution capabilities,” said Isha Mukesh Ambani, executive director, Reliance Retail Ventures Limited.
Hamad Shahwan Aldhaheri, executive director of the private equities department, 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.”
Earlier, Qatar Investment Authority (QIA), the sovereign wealth fund of Qatar, had committed an investment of Rs 8,278 crore in RRVL, to acquire 0.99% stake. QIA had valued Reliance Retail at Rs 8.28 lakh crore. RRVL, through its subsidiaries and associates, operates India’s largest retail business with an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets. RRVL has digitised over 3 million small and unorganised merchants. This will enable these merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.