Reliance Industries and Reliance Retail Ventures announced that a wholly owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) will invest Rs 5,512.50 crore into RRVL, a subsidiary of Reliance Industries. This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. ADIA’s investment will translate into a 1.20% equity stake in RRVL on a fully diluted basis.
With this investment, RRVL has raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.
Mukesh Ambani, chairman and managing director of Reliance Industries, said: “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. 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.”
Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA, said: “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. 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.”
Recently, Reliance Industries announced that global investment firm TPG will invest Rs 1,837.5 crore and GIC will invest Rs 5,512.5 crore into Reliance Retail Ventures (RRVL). While the GIC investment valued RRVL at a pre-money equity value of Rs 4.285 lakh crore, and translates into a 1.22% equity stake in RRVL, TPG’s investment will translate into a 0.41% equity stake in RRVL on a fully diluted basis.