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QIA will invest Rs 8,278 crore for a 0.99% stake in Reliance Retail Ventures

Aug 24, 2023

By: BlinkX Research Team

Qatar Investment Authority (QIA) will invest Rs 8,278 crore ($1 billion) in Reliance Retail Ventures Ltd (RRVL), Mukesh Ambani's Reliance Industries' retail subsidiary, for a 0.99 percent fully diluted share.

According to RRVL, the investment would be done through a wholly-owned subsidiary of QIA at a valuation of Rs 8.28 trillion ($100 billion).

According to the company, RRVL raised Rs 47,265 crore in 2020 from major global investors such as Silver Lake, GIC, PIF, KKR, Mubadala, General Atlantic, Abu Dhabi Investment Authority, TPG, and L Catterton for a 10.09 percent ownership at a pre-money equity valuation of Rs 4.21 trillion.

RRVL received financial advice from Morgan Stanley, while RIL received process and deal structure advice from Goldman Sachs.

Isha Mukesh Ambani, director at RRVL, said, “We look forward to benefitting from QIA’s global experience and strong track record of value creation…The investment by QIA is a strong endorsement of a positive outlook towards the Indian economy and Reliance’s retail business model, strategy and execution capabilities.”

Mansoor Ebrahim Al-Mahmoud, CEO, QIA, said, “QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market.”

With a customer base of 267 million and an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets, RRVL operates India's largest retail business through its subsidiaries and associates.

Source: Media Reports