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Mubadala-Reliance Retail deal | Here are the 5 key takeaways

Mubadala’s investment will translate into a 1.4 percent equity stake in Reliance Industries (RIL) subsidiary Reliance Retail Ventures (RRVL) on a fully diluted basis

October 01, 2020 / 11:01 PM IST

Abu Dhabi state fund Mubadala Investment Co will invest Rs 6,247.5 crore to secure 1.4 percent in the retail unit of Reliance Industries (RIL).

This latest investment — with Silver Lake's co-investors and General Atlantic, is the fifth in three weeks — values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore, RIL said in an exchange filing.

Here are five key things to know about this deal:

>> This is the second significant investment by Mubadala in a Reliance Industries subsidiary after the $1.2 billion investment in Jio Platforms announced earlier this year.

>> Mubadala is billed as the second-biggest state investor after Abu Dhabi Investment Authority. It has more than 50 businesses and investments in over 50 countries.

>> Mubadala’s investment will translate into a 1.4 percent equity stake in Reliance Retail Ventures on a fully diluted basis.

>> Investor interest in Reliance Retail, a subsidiary of RRVL, has been amplifying in the past few weeks. Besides the Silver Lake investments, India’s biggest brick-and-mortar retail business has also collected Rs 5,550 crore from US buyout firm KKR & Co and Rs 3,675 crore from private equity firm General Atlantic.

>> Mubadala’s portfolio spans advanced manufacturing, semiconductors, metals and mining, pharmaceutical and medical technology, renewable energy and utilities, and the management of diverse financial holdings.

Disclaimer: Reliance Industries (RIL) is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

Moneycontrol News
first published: Oct 1, 2020 07:29 pm