This investment gives PIF a 2.04% stake in Reliance Retail Ventures.

Reliance Fresh store in Kalyan area of Mumbai
Money Retail Thursday, November 05, 2020 - 17:16

In yet another cheque to Mukesh Ambani-owned Reliance Industries retail arm, Saudi Arabia’s sovereign wealth fund Public Investment Fund (“PIF”) will invest Rs 9,555 crore (approximately $1.3 billion) for an equity stake of 2.04% into Reliance Retail Ventures (RRVL).

This investment values RRVL at a pre-money equity value of Rs 4.587 lakh crore (approximately $62.4 billion). This investment is PIF’s second in a Reliance company after it acquired a 2.32% stake in Jio Platforms, the digital services subsidiary of Reliance Industries.

The company said in a statement that the investment is in line with PIF's strategy and mandate to invest globally in innovative and transformative businesses that generate long-term commercial returns.

This investment also comes a month after RRVL raised Rs 5,512.50 crore from Abu Dhabi Investment Authority (ADIA) for a 1.2% stake.

With this investment, RRVL has raised Rs 47,265 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA.

"We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and  millions of small merchants,” Mukesh Ambani, Chairman and Managing Director of Reliance Industries said in a statement.

Reliance Retail, a subsidiary of RRVL, has been aggressively growing its presence in the country. It currently operates around12,000 stores across the country seeing over 640 million footfalls.

His Excellency Yasir Al-Rumayyan, Governor of PIF, said: "We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India’s most exciting sectors. This transaction demonstrates PIF’s commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors.”

“This investment further demonstrates PIF’s commitment to generating returns for the Saudi people and driving the economic diversification of Saudi Arabia.”

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