RIL says QIA to buy 0.99% stake in Reliance Retail for Rs 8,278 crore

Reliance Industries Ltd (RIL) on Wednesday said Qatar Investment Authority, through a wholly-owned subsidiary, will invest Rs 8,278 crore into subsidiary Reliance Retail Ventures Limited (RRVL). This investment values RRVL at a pre-money equity value of Rs 8.278 lakh crore, RIL said in a BSE filing.

QIA’s investment will translate into a minority equity stake of 0.99 per cent in RRVL on a fully-diluted basis. The previous fund-raise round by RRVL in 2020 from various global investors of an aggregate amount of Rs 47,265 crore was done at a pre-money equity value of Rs 4.21 lakh crore.

Isha Mukesh Ambani, Director, RRVL said, “We are delighted to welcome QIA as an investor in Reliance Retail Ventures Limited. We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited 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 Indian economy and Reliance’s retail business model, strategy and execution capabilities.”

Mansoor Ebrahim Al-Mahmoud, CEO, QIA, said, “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.”

RIL said RRVL’s vision is to galvanise the Indian retail sector through an inclusive strategy serving millions of customers, empowering micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians.

Morgan Stanley acted as financial advisor to Reliance Retail Ventures and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Goldman Sachs advised on the process and transaction structuring. AZB and Cleary Gottlieb acted as legal counsel to QIA.

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