In a major investment, a wholly-owned subsidiary of the Abu Dhabi Investment Authority will invest Rs 4,966.80 crore in Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries.
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, the company said. ADIA’s investment will translate into an equity stake of 0.59% in RRVL on a fully-diluted basis. The transaction is subject to customary approvals. Morgan Stanley provided financial advisory services to Reliance Retail Ventures, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell served as legal advisors.
Isha Mukesh Ambani, executive director, Reliance Retail, said, “We are pleased to 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.”
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. We are pleased to partner with the Reliance Group, and increase our exposure to India’s dynamic and fast-growing consumer sector.”
RRVL, through its subsidiaries and associates, operates one of India’s largest, fastest-growing, and most profitable retail business, serving 267 million loyalty customers with an integrated omni-channel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
Established in 1976, ADIA is a globally-diversified investment institution that prudently invests funds on behalf of the government of Abu Dhabi.