The Abu Dhabi Investment Authority (ADIA) sovereign wealth fund has purchased 1.2% stake in India’s Reliance Retail Ventures for $750 million or 4.29 trillion rupees.
With this latest investment, Reliance Retail Ventures Ltd. (RRVL) has raised 377.1 billion rupees from global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks. Mubadala has picked up 1.4% stake in RRVL for $844 million last week.
“This investment values Reliance Retail Ventures Ltd (RRVL) at a pre-money equity value of ₹ 4.285 lakh crore. ADIA’s investment will translate into a 1.2% equity stake in RRVL on a fully diluted basis,” the company said in regulatory filing today.
Commenting on the investment, 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.”
Mukesh Ambani, chairman and managing director of Reliance Industries said, “The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational New Commerce business model that it is rolling out.”
Spread across the country, Reliance Retail Limited a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business. It is serving close to 640 million footfalls across 12,000 stores in India. Reliance Retail runs supermarkets, India’s largest consumer electronics chain, a cash-and-carry wholesaler, fast-fashion outlets and an online grocery store called JioMart.
“Reliance Retail, through its New Commerce strategy, has started a transformational digitalization of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants. This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers,” Reliance noted.
RRVL reported a consolidated turnover of ₹ 162,936 crore and net profit of ₹ 5,448 crore for the year ended March 31, 2020.
