Reliance Retail Ventures Ltd (RRVL), a subsidiary of Reliance Industries Ltd, on Friday (October 6) said a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 4,966.80 crore into the company.
This investment values RRVL at a pre-money equity value of Rs 8.381 lakh crore, which makes it among the top four companies by equity value in the country. This investment by ADIA will translate into an equity stake of 0.59% in RRVL on a fully-diluted basis.
With this investment, Reliance Retail has successfully divested a 1.83% stake to three prominent investors namely Qatar Investment Authority, global investment firm KKR, and the Abu Dhabi Investment Authority.
In October 2020, ADIA had invested Rs 5,512.5 crore in Reliance Retail for a 1.18 percent stake. In total, these strategic investments have injected a substantial sum of Rs 15,314 crore into Reliance Retail Ventures.
RRVL, through its subsidiaries and associates, operates India’s largest, fastest-growing, and most profitable retail business serving 267 million loyalty customers with an integrated omni-channel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
Isha Mukesh Ambani, executive director of Reliance Retail Ventures, said, “We are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures.
Their long-standing experience of over decades of value creation globally will further benefit us in implementing our vision and driving the transformation of the Indian retail sector.”
Hamad Shahwan Aldhaheri, executive director of the Private Equities Department, ADIA, said, “This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end-markets.”
The transaction is subject to customary approvals. Morgan Stanley acted as financial advisor to Reliance Retail Ventures and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
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