The Mukesh Ambani-led Reliance Industries announced on Tuesday in a regulatory filing that a subsidiary of the Abu Dhabi Investment Authority will invest Rs 5,512.50 crore for 1.2% stake in its retail arm, Reliance Retail Ventures Limited or RRVL, at a pre-money equity value of Rs 4.28 lakh crore.
ADIA is a globally-diversified investment firm that invests funds on the behalf of the Government of Abu Dhabi, Mint reported.
“Reliance Retail has rapidly established itself as one of the leading retail businesses in India and, by leveraging both its physical and digital supply chains, is strongly positioned for further growth,” said Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA. He added that ADIA’s investment is consistent with its strategy of investing in market-leading businesses in Asia.
“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. We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally.”
— Reliance Industries Chairperson and Managing Director Mukesh Ambani
Ambani has been on an investment shopping spree over the last several months even in the middle of the economic downturn caused by the coronavirus pandemic.
On October 3, Reliance Industries announced that it had decided to raise Rs 7,350 crore from two investors – Singapore’s sovereign wealth fund GIC and Global alternative asset firm TPG. The company said in an exchange filing that through two separate deals, it will sell 1.63% stake in its retail arm Reliance Retail Ventures Limited. Of this, GIC will buy 1.22% of the share by investing Rs 5,512.5 crore. TPG will invest Rs 1,837.5 crore to buy 0.41% stake.
In just five days, Reliance Industries has entered into six deals to sell stake in its retail arm. On October 1, RIL had announced that Abu Dhabi-based sovereign wealth fund Mubadala Investment Co will invest Rs 6,247.5 crore to buy a 1.4% stake in RRVL. On September 30, global private equity firm General Atlantic bought 0.84% stake in the company for Rs 3,675 crore. United States private equity firm Silver Lake co-investors put in an additional Rs 1,875 crore, apart from a fund infusion it had made earlier this year.
On September 9, Silver Lake had announced that it will invest Rs 7,500 crore in the retail arm of Reliance Industries for a 1.75% stake. This came after it picked up a 2.08% stake for $1.35 billion (Rs 9,894 crore) investment in Jio Platforms earlier this year.