Reliance Retail in talks to raise $1.5 billion from existing investors

Reliance Retail is in talks to raise $1.5 billion from existing investors, including the sovereign wealth funds of Singapore, Abi Dhabi and Saudi Arabia, Reuters reported on Wednesday, citing sources.

The talks are part of an internal target to raise $3.5 billion by the end of September this year. Out of that, a $1 billion investment has been committed by the Qatar Investment Authority (QIA). Earlier this week, KKR & Co. announced an injection of $250 million.

Out of $1.5 billion, 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. They will value the retail arm of Mukesh Ambani-led conglomerate at $100 billion.

Reuters quoted another source as saying that some of the investors may invest less than $500 million, and thus, the company is also looking at some other investors for raising funds.

GIC, PIF and ADIA are among the world’s biggest investment funds, and together they own a 4.4 per cent stake in the Indian retailer.

Reliance Industries, the retail arm’s parent, also has plans to invest in the ongoing fundraising round.

Reliance sold a 10.09 per cent stake in its retail unit in 2020, valuing it at Rs 4.68 trillion. At that time, GIC and ADIA invested $664 million each, while PIF pumped in $1.15 billion, based on current exchange rates.

Reliance Retail is India’s largest retailer.