NE BUSINESS BUREAU
MUMBAI, OCT 6
Reliance Industries Limited (RIL) and Reliance Retail Ventures Limited (RRVL) announced, on Tuesday, that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest ₹5,512.50 crore into RRVL, a subsidiary of Reliance Industries.
This investment values RRVL at a pre-money equity value of ₹ 4.285 lakh crore. ADIA’s investment will translate into a 1.20 percent equity stake in RRVL on a fully diluted basis. With this investment, RRVL has raised ₹ 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG, and ADIA in less than four weeks.
Commenting on this, Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “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. 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.”
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said, “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 transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
