Reliance Retail Ventures to raise Rs 4,966.80 crore from ADIA arm

Reliance Retail Ventures will raise Rs 4,966.80 crore from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) at a pre-money equity value of Rs 8.38 trillion, thus making it among the top four companies by equity value in the country, Reliance Industries said in a release. 

This investment by ADIA will translate into an equity stake of 0.59 per cent in the company on a fully-diluted basis.

ADIA had also participated in the retailer’s 2020 round of fundraise and had then picked up 1.18 per cent stake for Rs 5,512.50 crore.

Reliance Retail Ventures also raised funds from Qatar Investment Authority and KKR recently. 

Morgan Stanley acted as financial advisor to Reliance Retail Ventures and Cyril Amarchand Mangaldas and Davis Polk & Wardwell were the legal counsels. 

“We are pleased to further deepen our relationship with ADIA with its continued support as an investor in Reliance Retail Ventures. Its 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 Reliance Retail Ventures is a further testament to its belief in the Indian economy and our business fundamentals, strategy and execution capabilities,” Isha Mukesh Ambani, executive director, Reliance Retail Ventures, said in its release. 

Reliance Retail Ventures, through its subsidiaries and associates, operates India’s largest retail business with a network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.

“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,” Hamad Shahwan Aldhaheri, executive director (ED) of the private equities department, ADIA, said.