Reliance Industries on Wednesday announced that Qatar Investment Authority (QIA), through a wholly-owned subsidiary, will invest Rs 8,278 crore into its retail arm Reliance Retail Ventures Limited (RRVL).
“This investment values RRVL at a pre-money equity value of Rs 8.278 lakh crore,” Reliance Industries said in a regulatory filing.
RRVL, through its subsidiaries and associates, operates India’s largest, retail business with an integrated omni-channel network of over 18,500 stores.
“QIA’s investment will translate into a minority equity stake of 0.99 per cent in RRVL on a fully-diluted basis,” it added.
RRVL Director Isha Mukesh Ambani said, “We are delighted to welcome QIA as an investor in Reliance Retail Ventures Ltd. We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world class institution, driving transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards Indian economy and Reliance’s retail business model, strategy and execution capabilities.”
Mansoor Ebrahim Al-Mahmoud, CEO, QIA, said, “QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market. We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India.”
RRVL, which is the leading retailer of the country, is aggressively expanding its business here by acquiring companies and getting franchise rights of leading international 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.
In 2020, RRVL had raised Rs 47,265 crore (around USD 6.4 billion) from global private equity funds for a 10.09 per cent stake, valuing the company at more than Rs 4.2 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 around USD 57 billion at that time.
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