RIL gains 3% as Saudi fund invests Rs 9,555 crore in Reliance Retail

RIL has now recovered 9 per cent in past three trading days and erased most its losses reported post September quarter results

Shares of Reliance Industries (RIL) rose 3 per cent to Rs 2,013.75 on the BSE on Friday after the company said that Saudi Arabia’s Public Investment Fund (PIF) will invest Rs 9,555 crore ($1.29 billion) for 2.04 per cent equity stake in its retail arm.

“This investment values Reliance Retail Ventures (RRVL) at a pre-money equity value of Rs 4.587 trillion ($62.4 billion). This investment would further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment,” RIL said in media release.

The PPF has signed definitive documentation to acquire a 2.04 per cent equity stake in RRVL. The investment is in line with PIF's strategy and mandate to invest globally in innovative and transformative businesses that generate long-term commercial returns.

RRVL, through its subsidiary Reliance Retail, is market leading in the Indian organized physical retail market and is revolutionizing India’s entire retail sector by further integrating the Indian retail markets through its ‘New Commerce’ strategy, it said.

RRVL, a subsidiary of RIL is the holding company of Reliance Retail, which operates the retail business.

Reliance Retail operates India’s largest, fast-growing retail business, serving close to 640 million footfall at its 12,000 stores across the country. Reliance Retail’s vision is to galvanise the Indian retail sector through its new commerce strategy, serving millions of customers by empowering millions of micro, small and medium enterprises.

The latest transaction takes the total fundraising by RIL to Rs 47,265 crore in the past few months from global investors, including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG, and Abu Dhabi Investment Authority.

With today’s gain, RIL's stock has now recovered 9 per cent in the past three trading days and erased most its losses reported post September quarter results. The stock slipped 10 per cent from Rs 2,054 on Friday, October 30 to Rs 1,849 on Tuesday, November 3.