ADIA to invest Rs. 5,512.50 Cr in Reliance Retail for 1.2% stake

Reliance Industries Limited and Reliance Retail Ventures Limited announced today that a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs. 5,512.50 crore into RRVL, a subsidiary of Reliance Industries.

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% 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.

Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its ~12,000 stores nationwide. Reliance Retail’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and 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.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries said, “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.”

Hamad Shahwan Aldhaheri, Executive Director, Private Equities Department, ADIA said, “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 counsel.

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