ADIA invests $597 Million in Mukesh Ambani's Reliance Retail

The Abu Dhabi Investment Authority (ADIA) has confirmed its acquisition of an additional stake in Reliance Retail Ventures Ltd., a retail unit owned by Indian tycoon Mukesh Ambani. This investment amounts to 49.7 billion rupees (approximately $597 million), and will give ADIA a 0.6% ownership of the closely-held company. Reliance Industries Ltd., the parent company, disclosed this development in a recent exchange filing. This transaction values Reliance Retail at a pre-money equity value of 8.38 trillion rupees. 

Previously, in October 2020, the UAE-based ADIA invested $750 million in Reliance Retail. They also contributed an additional $507 million in the same month towards the conglomerate's fiber-optic assets. This move reflects ADIA's confidence in the rapid expansion of Ambani's retail venture. 

KKR & Co., another global investment firm, also increased its investment in Ambani's retail business by $250 million recently. Qatar Investment Authority secured a 0.99% stake in Reliance Retail for $1 billion in August. Ambani, speaking to shareholders earlier this year, expressed intentions to involve more international investors in the retail business. 

Reliance Retail, now led by Ambani’s daughter Isha, has strategically acquired various businesses to establish a prominent position in India's growing retail sector, vying with global giants like Amazon and Walmart. Three years ago, Reliance Retail successfully raised over $6 billion from investors including sovereign wealth funds from the Middle East and Singapore, as well as General Atlantic and Silver Lake Partners.