Ambani’s Reliance Retail Likely To Get $600 Million Investment From ADIA: Report

Abu Dhabi Investment Authority (ADIA) is looking to purchase an additional stake in Mukesh Ambani’s retail arm Reliance Retail Ventures (RRVL), according to a report by The Economic Times. 

ADIA, which already owns 1.2% stake in the retail giant, is planning to further invest over $600 million in Reliance Retail. It had purchased 1.2% stake in the retail company for Rs 5,512.50 crore in October 2020.

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Last week, RRVL  successfully received the complete subscription amount of Rs 2,069.50 crore from the global investment firm KKR and subsequently issued 1.71 crore equity shares. This led to an increase in KKR’s share allotment in RRVL from 1.17% to 1.42%.

In 2020, RRVL garnered Rs 47,265 crore from international private equity funds, securing a 10.09% stake and appraising the company's worth at over Rs 4.2 lakh crore, which was reportedly the largest fundraising in the sector at that time.

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 $57 billion at that time.

According to media reports, Reliance Industries is looking to sell 8-10% stake in Reliance Retail for projected initial public offering (IPO).

RRVL is pursuing an aggressive expansion strategy through acquisitions and securing franchise rights for prominent international brands within the Indian market. In addition, the company is making substantial investments in the expansion of its infrastructure and has recently completed the acquisition of the Indian operations of the renowned German retail giant, Metro Cash and Carry.

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In FY23, Isha Ambani-led retail company’s digital commerce and new commerce businesses contributed 18% of its revenue, at Rs 2.60 lakh crore. It manages a vast network comprising more than 18,500 stores and digital commerce platforms that cover a wide range of categories, including grocery, consumer electronics, fashion & lifestyle, and pharmaceuticals.

Reliance Industries is trading 0.62% at Rs 2,356 per piece on Wednesday's trading session. RIL stock had opened at Rs 2,343 per share against previous close at Rs 2,432 on Tuesday.