Reliance Retail Ventures Limited (RRVL) announced a significant investment on Friday, October 6, revealing that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) is set to invest ₹4,966.80 crore into the company.
As per a statement released by the retail conglomerate, this substantial investment places a valuation of ₹8.381 lakh crore on Reliance Retail Ventures, positioning it among the top four companies in the country in terms of equity value.
The ADIA's investment will translate into an equity stake of 0.59 percent in Reliance Retail on a fully diluted basis, contingent upon customary approvals. Notably, Morgan Stanley served as the financial advisor to Reliance Retail Ventures Limited, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
Isha Mukesh Ambani, Executive Director of RRVL, expressed satisfaction with the deepening relationship with ADIA and their continued support as investors in RRVL. She emphasized the significant value that ADIA's decades of global experience bring to Reliance Retail Ventures in pursuing its vision and driving transformative change within the Indian retail sector.
Reliance Retail, which boasts a vast network of more than 18,000 stores and competes with industry giants like Amazon and Walmart's Flipkart, has been a magnet for investments from various quarters. In recent months, it has secured investments from private equity firm KKR & Co and the Qatar Investment Authority (QIA).
RRVL operates a seamlessly integrated omnichannel network encompassing digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharmaceutical consumption segments.
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, lauded Reliance Retail's impressive growth and adaptability in a rapidly evolving market. He stated that the investment aligns with ADIA's strategy of supporting portfolio companies that are driving transformation within their respective industries.
Aldhaheri added, "We are pleased to partner with the Reliance Group and increase our exposure to India's dynamic and fast-growing consumer sector."
On Friday, October 6, Reliance Industries' shares settled 0.18 percent higher at ₹2,317.90 apiece on the BSE.
