ADIA to invest Rs 5,512.50 crore in Reliance Retail Ventures

Reliance Industries Limited and Reliance Retail Ventures Limited (RRVL) on Tuesday announced that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.50 crore into RRVL. This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore.

ADIA's investment will translate into a 1.20 per cent equity stake in RRVL on a fully diluted basis. With this investment, RRVL has raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, "We are delighted with ADIA's current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally. The investment by ADIA is a further endorsement of Reliance Retail's performance and potential and the inclusive and transformational New Commerce business model that it is rolling out."

RRVL is a subsidiary of Reliance Industries and operates India's largest, fastest-growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores across the country. RRVL reported a consolidated turnover of Rs 162,936 crore ($ 21.7 billion) and net profit of Rs 5,448 crore ($ 726.4 million) for the year ended March 31, 2020. Reliance Retail topped the list of '50 fastest-growing retailers globally between FY2013-2018' in the Deloitte's Global Powers of Retailing 2020 index.

Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said, "Reliance Retail has rapidly established itself as one of the leading retail businesses in India and, by leveraging both its physical and digital supply chains, is strongly positioned for further growth. This investment is consistent with our strategy of investing in market leading businesses in Asia linked to the region's consumption-driven growth and rapid technological advancement."

The transaction is subject to regulatory and other customary approvals.

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

Abu Dhabi Investment Authority (ADIA)

ADIA established in 1976 is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation.