Reliance Industries on Wednesday said it has received Rs 8,278 crore from Qatar Investment Authority (QIA) for around 1% stake in Reliance Retail Ventures Ltd (RRVL), the retail arm of billionaire Mukesh Ambani-led group.
As per the deal, it has allotted 6.86 crore equity shares to QIA of RRVL, which is the leading retailer in the country, said a regulatory filing from Reliance Industries Ltd (RIL). The investment is made by QIA’s wholly-owned subsidiary into India’s largest retailer at a valuation of Rs 8.278 lakh crore (USD 100 billion). Earlier on August 23, RIL had announced divesting 1% stake in RRVL to QIA for a consideration of Rs 8,278 crore (USD 1 billion).
Updating about the development, Reliance Industries had said: “QIA’s investment will translate into a minority equity stake of 0.99% in RRVL on a fully diluted basis.” Last month in the AGM of Reliance Industries, its Chairman Mukesh Ambani had said several marquee global strategic and financial investors have shown strong interest in Reliance Retail. Addressing shareholders, he had said if RRVL was listed on stock exchanges, then based on the current valuation, it would be among the top four listed entities in the country.
Referring to around 1% stake purchase by Qatar Investment Authority (QIA) in Reliance Retail Venture Ltd (RRVL) by investing Rs 8,278 crore (USD one billion) at a valuation of USD 100 billion, Mukesh Ambani had said the company’s valuation has doubled in less than three years.
In 2020, RRVL had raised Rs 47,265 crore (around USD 6.4 billion) from global private equity funds for a 10.09% stake, valuing the company at more than Rs 4.2 lakh crore. The company had raised funds from Silver Lake, KKR, Mubadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic and Saudi Arabia’s Public Investment Fund at a valuation of around USD 57 billion at that time.
RRVL is aggressively expanding its business here by acquiring companies and getting franchise rights of leading international brands for the Indian market. Besides, it is investing on scaling up infrastructure and also acquired the India business of German retail major Metro Cash and Carry.
