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Abu Dhabi Investment Authority Invests ₹ 5,512.50 Crore In Reliance Retail

Updated 07 October 2020 | 12:20 IST

Billionaire Mukesh Ambani-promoted Reliance Industries said on Tuesday that its retail arm, Reliance Retail Ventures, will sell a 1.2 percent stake to Abu Dhabi Investment Authority (ADIA) for ₹ 5,512.50 crores. The deal gives Reliance Retail Ventures a pre-money equity value of ₹ 4.29 lakh crore, the conglomerate said during a handout. The transaction, the latest during a series of investments in Reliance Retail from global investors, is probably going to bolster Reliance Industries’ retail presence within the domestic market.

Here are 10 things to know:

  • With this investment, Reliance Industries said its retail unit has raised a complete of ₹ 37,710 crores from leading global investors, including Silver Lake and KKR, within four weeks.
  • That is a second investment by ADIA during a Reliance Industries group company. In June, the Abu Dhabi-based state-owned company had agreed to require a 1.16 percent stake in Reliance Industries’ digital services arm, Jio Platforms, for ₹ 5,683.50 crores.
  • “We are delighted with ADIA’s current investment and continued support and hope to profit from its strong diary of over four decades of useful creation globally. The investment by ADIA may be a further endorsement of Reliance Retail’s performance and potential and therefore the inclusive and transformational New Commerce business model that it’s rolling out,” said Mukesh Ambani, chairman, and director, Reliance Industries.
  • Reliance Retail Ventures, a subsidiary of Reliance Industries, operates the country’s largest, fastest-growing, and most profitable retail business serving on the brink of 640 million footfalls across its 12,000 stores nationwide, the group said.
  • Last week, Abu Dhabi-based state fund Mubadala invested ₹ 6,247.5 crores in Reliance Retail Ventures for a 1.40 percent stake within the company.

  • Reliance Industries shares ended 0.05 percent lower at ₹ 2,210 on the BSE, before the announcement of effect ADIA, underperforming the benchmark S&P BSE Sensex index, which climbed to a seven-month high.
    Reliance Industries has attracted a series of investments this year, which, alongside rights offering worth ₹ 53,000 crores, have helped the group become net debt-free much before its goal of March 2021.
  • The group has been aggressively expanding its footprint within the domestic retail sector because it looks to draw in potential investors over the subsequent few quarters.
  • At Reliance Industries’ annual general meeting this year, Mr. Ambani had said his group had been approached by investors for a stake in Reliance Retail.
  • Last month, Reliance Industries forged a ₹ 24,713-crore deal to accumulate rival Future Group’s retail business. That deal followed its launch of JioMart, a web grocery service, In May, during a move aimed toward rivaling Amazon’s local unit and Walmart’s Flipkart within the huge market.

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