Reliance Industries Ltd said on Tuesday the Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.50 crore in its retail unit.
The investment values Reliance Retail Ventures Limited (RRVL) at a pre-money equity value of Rs 4.285 trillion. ADIA’s investment will translate into a 1.2 per cent equity stake in RRVL on a fully diluted basis, said Reliance in a press statement.
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.
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."
Mukesh Ambani, chairman and managing director of Reliance Industries said, "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," he said.
Reliance, already India's biggest retailer with roughly 12,000 stores, forged a $3.38 billion deal in August to acquire rival Future Group's retail business.
The conglomerate is also expanding its so-called new commerce venture, which ties neighborhood stores to Reliance for online deliveries of groceries, apparel and electronics in a space currently dominated by Walmart Inc's Flipkart and Amazon.com Inc's Indian arm.