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Qatar Investment Authority (QIA) will through a subsidiary invest Rs 8,278 crore in Reliance Retail Ventures (RRV), the retail arm of Reliance Industries, for a 0.99 per cent stake at a pre-money equity value of Rs 8.28 trillion.
In 2020, investors which invested in RRV included Silver Lake, GIC, PIF, KKR, Mubadala, General Atlantic, Abu Dhabi Investment Authority, TPG and L Catterton.
“We are delighted to welcome QIA as an investor in RRV. We look forward to benefiting from QIA’s global experience and strong track record of value creation as we further develop RRV into a world class institution, driving transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards the Indian economy and Reliance’s retail business model, strategy and execution capabilities,” said Isha Ambani, director of RRV.
RRV operates India’s largest retail business with a customer base of 267 million and an omnichannel network of more than 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle, and pharma consumption baskets.
“QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market. We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India,” said Mansoor Ebrahim Al-Mahmoud, chief executive officer of QIA.
RRV reported a consolidated turnover of Rs 260,364 crore ($31.7 billion) and net profit of Rs 9,181 crore ($1.1 billion) in FY23.
Morgan Stanley was the financial advisor to RRV and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels for the new deal. Goldman Sachs, acting as financial advisor to Reliance Industries, advised on the process and transaction structuring. AZB and Cleary Gottlieb acted as legal counsel to QIA.
First Published: Aug 23 2023 | 5:21 PM IST
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