Reliance Industries Limited and Reliance Retail Ventures Limited (RRVL) on Tuesday announced that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.50 crore into RRVL, a subsidiary of Reliance Industries. The investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore.
ADIA's investment will translate into a 1.20 per cent equity stake in RRVL on a fully diluted basis.
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.
A media release said Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fastest-growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide.
Reliance Retail's vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians, the release said.
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.
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said that 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.
"This investment is consistent with our strategy of investing in market-leading businesses in Asia linked to the region's consumption-driven growth and rapid technological advancement." The release said that Reliance Retail, through its new commerce strategy, has started a transformational digitalisation of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants. "This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers," it said.
The transaction is subject to regulatory and other customary approvals.
