Reliance Retail Likely To Raise $1.5 Billion From Gulf, Singapore Funds: Report

Isha Ambani-led Reliance Retail (RRVL) is in talks with its existing investors including sovereign wealth funds of Singapore, Abu Dhabi and Saudi Arabia to raise about $1.5 billion, sources were quoted as saying by Reuters.

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The talks with the investors is a part of an internal target to raise $3.5 billion which the company wants to close by the end September, according to Reuters report. This comes after KKR & Co. announced a $250 million investment this week and QIA said it would be investing $1 billion in India’s largest retailer.

One of the sources further added that Singapore's GIC, the Abu Dhabi Investment Authority (ADIA) and Saudi Arabia's Public Investment Fund (PIF) are looking to invest at least $500 million each in Reliance Retail at a valuation of $100 billion.

Another source revealed that some of the three investors could end up putting in less than $500 million, and talks were also on with at least one or two further investors for the fund raising.

"All the three investors have evaluated the company quite seriously," the source said. However, it is to be noted that the funding plans could still change.

GIC, PIF, and ADIA, three of the largest investment funds globally, collectively hold a 4.4% ownership stake in the Indian retailer. According to a Reuters report, RRVL’s parent company Reliance Industries also has plans to invest in the ongoing fundraising round of $3.5 billion.

In 2020, Reliance divested a 10.09% share of its retail division, valuing it at 4.68 trillion rupees ($56.4 billion). During this transaction, GIC and ADIA each invested $664 million, while PIF contributed $1.15 billion, using the prevailing exchange rates.

In a recent speech, Ambani mentioned that "several prominent global strategic and financial investors have expressed significant interest" in his company, although he did not disclose any specific names. Back in 2019, the billionaire had announced his group's intention to list the retail business within a five-year timeframe.

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Reliance Retail reported a consolidated net profit of 91.81 billion rupees ($1.11 billion) for the financial year that ended in March 2023, on revenue of 2.6 trillion rupees.