QIA to invest Rs 8,278 cr in Reliance Retail Ventures for 0.99% stake

Retail arm of Reliance Industries valued at pre-money equity value of Rs 8.28 trn

Qatar Investment Authority (QIA) will invest Rs 8,278 crore ($1 billion) in Reliance Retail Ventures Ltd (RRVL), the retail

arm of Mukesh Ambani-led Reliance Industries, for a 0.99 per cent stake on a fully diluted basis.
 

The investment, through a wholly owned subsidiary of QIA, will be made at a valuation of Rs 8.28 trillion ($100 billion), according to a release by RRVL.
 

In 2020, RRVL had raised Rs 47,265 crore from top global investors, including Silver Lake, GIC, PIF, KKR, Mubadala, General Atlantic, Abu Dhabi Investment Authority, TPG for a 10.09 per cent stake at a pre-money equity value of Rs 4.21 trillion, the company said.
 

Morgan Stanley acted as financial adviser to RRVL, while Goldman Sachs advised RIL on the process and

transaction structuring. 

Isha Mukesh Ambani, director at RRVL, said, “We look forward to benefitting from QIA’s global experience and strong track record of value creation…The investment by QIA is a strong endorsement of a positive outlook towards the Indian economy and Reliance’s retail business model, strategy and execution capabilities.”

RRVL, through its subsidiaries and associates, operates India’s largest retail business with a customer base of 267 million and an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.

Mansoor Ebrahim Al-Mahmoud, CEO, QIA, said, “QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market.”

RRVL reported a consolidated turnover of Rs 2.6 trillion ($ 31.7 billion) and net profit of Rs 9,181 crore ($1.1 billion) in FY23.