Mubadala to invest Rs 6,247.5 crore in Reliance Retail Ventures

Reliance Industries Limited (RIL) and Reliance Retail Ventures Limited (RRVL) on Thursday announced that Mubadala Investment Company (Mubadala) will invest Rs 6,247.5 crore (AED 3.1 billion) into Reliance Retail Ventures Limited (RRVL).

The investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore. Mubadala's investment will translate into a 1.40 per cent equity stake in RRVL on a fully diluted basis.

This marks the second significant investment by Mubadala in a Reliance Industries subsidiary after the US $1.2 billion investment in Jio Platforms announced earlier this year.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: "I am happy to welcome Mubadala as a valued investor in Reliance Retail Ventures. We value the partnership with a knowledge-rich organization like Mubadala and acknowledge their confidence in our mission to strengthen the core of India's retail sector – the millions of small retailers, merchants and shopkeepers – through the power of technology. Mubadala's investment and guidance will be invaluable support in this journey."

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

Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: "We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures. Their vision is the inclusive transformation of India's consumer economy through the power of digitization, creating opportunities and market access for millions of small businesses across the country, and we are committed to supporting the company's continuing development."

The transaction is subject to regulatory and other customary approvals.

RRVL is a subsidiary of Reliance Industries Limited (Reliance Industries) and it operates India's fastest-growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores.

Mubadala Investment Company is the Abu Dhabi-based sovereign investor managing a global portfolio aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi.