Reliance Retail Raises Another Investment From UAE Based Wealth Fund ADIA

  • Reliance Retail raises another investment from UAE-based wealth fund ADIA (The Abu Dhabi Investment Authority).
  • Through this deal, the company will sell out its 1.2% stake for Rs 5,512 crore.
  • Last week, Another UAE-based sovereign wealth fund Mubadala had invested Rs 6,247.5 crore in Reliance Retail.

Reliance Industries retail arm Reliance Retail raises Rs 5,512 crore (around $750 million) for a 1.2% equity stake led by UAE-based wealth fund, The Abu Dhabi Investment Authority (ADIA).

“This investment values Reliance Retail Ventures Ltd (RRVL) at a pre-money equity value of Rs 4.28 lakh crore. The investment will give them a 1.2% equity stake in Reliance Retail business on a fully diluted basis,” The company said in its latest deal regulatory filing,

With the latest deal, Reliance Retail has raised over Rs 37,709.50 crore ($5.13 billion) from six investment firms, including TPG, KKR, Silver Lake, General Atlantic, Mubadala, GIC, and ADIA. Reliance Retail sold out its 8.48% equity stake on a fully diluted base.

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“Reliance Retail business 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.

“This deal with the Reliance Retail is consistent with our strategy of investing in market-leading businesses in Asia, linked to the region’s consumption-driven growth and rapid technological growth,” he added.

“The deal is a further endorsement of Reliance Retail’s performance, potential and the inclusive and transformational new Commerce business model that it is rolling out,” said, Mukesh Ambani, Chairman, Reliance Industries.

Furthermore, The ADIA has also invested Rs 5,683.50 crore for a 1.16% equity stake in Jio Platforms.

Earlier this week, Reliance Retail has raised around $1 billion led by TPG and Singapore-based investment corporation GIC for a 1.63% equity stake.

The company has shifted its focus to online and technological advancements. With the new business strategy, The company has started a transformational digitalization of small and unorganized retailers and is committed to expanding the network to over 20 million of these merchants, The company said in a Press Release.

Since January 2020, Reliance Industries has raised more than Rs 1.4 lakh crore for its subsidiaries such as Jio Platforms and Reliance Retail.

About — ADIA (The Abu Dhabi Investment Authority) is a UAE-based sovereign wealth fund founded in 1976 Zayed bin Sultan Al Nahyan, owned by the Emirate of Abu Dhabi founded to invest funds on behalf of the government. The investment authority currently has $8.28 billion in assets under management.

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