Reliance Retail, which recently raised USD 1 billion from Qatar’s sovereign agency, has garnered significant interest from a number of renowned international strategic and financial investors, RIL Chairman Mukesh Ambani said on Monday. He also stated that the retail venture would rank among the top four listed entities if it were to be listed on stock exchanges based on its current valuation.
In less than three years, the valuation of Reliance Retail has doubled and the pace of this value creation is “unmatched globally”, said Ambani addressing RIL shareholders.
“Several marquee global strategic and financial investors have shown strong interest in Reliance Retail. I will update you about our progress with them in due course,” he said.
Referring to the recent acquisition of a 1% share by Qatar Investment Authority (QIA) in Reliace Retail Venture Ltd (RRVL) through an investment of USD $1 billion (about Rs 8,278 crore), Mukesh Ambani said its valuation has doubled in less than three years.
“Just for context, during our fund-raise in September 2020, the valuation of our Retail business stood at Rs 4.28 lakh crore. In less than three years, the valuation of Retail has almost doubled, notwithstanding the intervening Covid-19 pandemic.
“Based on this valuation, Reliance Retail, had it been listed, would have ranked among the top four companies in India and top ten retailers globally,” he said.
While welcoming QIA, Ambani said the investment was done at a valuation of Rs 8.278 lakh crore “It is a testament to our unwavering commitment to quality, innovation, customer-centricity, and adaptability. Through strategic investments, digital transformation, and relentless focus on delivering exceptional experiences, we continue to earn the trust and love of our customers,” he said.
According to him, Reliance Retail, which is expanding its business is the “fastest growing” company.
“I am confident that as India grows from a USD 2,500 per-capita economy to a USD 10,000 per-capita economy, Reliance Retail will be our fastest growing business in revenues and EBITDA,” he said.
Earlier in 2020, RRVL had raised Rs 47,265 crore (around USD 6.4 billion) from global private equity funds for a 10.09 per cent 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.
By acquiring businesses and obtaining the franchise rights of top worldwide brands for the Indian market, RRVL is quickly growing its company here.
Reliance Retail crossed a billion transaction threshold and increased its registered user base to 249 million, according to RIL’s most recent annual report.
In FY23, Reliance Retail’s digital commerce and new commerce businesses contributed to 18 per cent of its revenue, which stood at Rs 2.60 lakh crore.
Its board had on July 4, 2023, approved the proposal in which shares held by such shareholders shall stand cancelled and extinguished as per the capital reduction plan.
