A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 4,966.80 crore into Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited.
This investment values RRVL at a pre-money equity value of Rs 8.381 lakh crore, which makes it among the top four companies by equity value in the country, said a press release from the company. This investment by ADIA will translate into an equity stake of 0.59 percent in RRVL on a fully-diluted basis.
“We are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures Limited. Their long-standing experience of over decades of value creation globally will further benefit us in implementing our vision and driving transformation of the Indian retail sector. ADIA’s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy and execution capabilities,” said Isha Mukesh Ambani, Executive Director, RRVL.
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department, ADIA, said: “Reliance Retail has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace. This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end-markets.”
RRVL, through its subsidiaries and associates, serves 267 million loyalty customers with an integrated omnichannel network of over 18,500 stores and digital commerce platforms.
The transaction is subject to customary approvals. Morgan Stanley acted as financial advisor to RRVL, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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