SUMMARY
This investment values RRVL at a pre-money equity value of INR 4.587 lakh Cr
Last month, Reliance Retail had bagged $1 Bn From GIC, TPG Capital
This investment is a record eighth by marquee global investors in Reliance Retail
Reliance Industries-owned retail unit Reliance Retail, on Thursday (November 5) announced that it has raised INR 9,555 Cr ($1.3 Bn approximately) from Saudi Arabia’s Public Investment Fund (PIF), to accelerate the growth of its digital retail empire.
This investment — a record eighth by marquee global investors — values Reliance Retail at a pre-money equity value of INR 4.587 lakh Cr (around $62.4 Bn).
Following the fresh infusion, Mukesh Ambani, chairman and managing director of Reliance Industries, said, “We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants.”
PIF’s investment in Reliance retail follows its earlier acquisition of a 2.32% stake in Jio Platforms, the digital services subsidiary of Reliance Industries.
Commenting on the investment, Yasir Al-Rumayyan, governor of PIF, said, “We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India’s most exciting sectors. This transaction demonstrates PIF’s commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors. This investment further demonstrates PIF’s commitment to generating returns for the Saudi people and driving the economic diversification of Saudi Arabia.”
Last month, Reliance Retail had raised nearly INR 7,349K Cr (nearly $1 Bn) from Global investors GIC and TGP.
GIC had invested INR 5,512.5 Cr into Reliance Retail for 1.22% stake at a pre-money equity value of INR 4.285 Lakh Cr. Meanwhile, TPG had invested INR 1,837.5 Cr for 0.41% stake at the same valuation. The last infusion by TPG was its second investment in Reliance Industries, prior to this it had invested INR 4.546.8 Cr in Jio Platform.
In October, Reliance Retail had raised funding from General Atlantic, Silver Lake co-investors and Mubadala. Silver Lake co-investors invested INR 1,875 Cr increasing its stake to 2.13% in the company. The private equity firm had flagged off Reliance Retails’ funding spree with INR 7,500 Cr for a 1.75% back in September.
Abu Dhabi’s sovereign fund Mubadala Investment Company had invested INR 6,247 Cr for 1.4% stake. Meanwhile, General Atlantic has committed to invest INR 3,675 Cr in Reliance Retail in exchange for 0.84% equity stake on a fully diluted basis. The company has been valued at a pre-money equity value of INR 4.285 Lakh Cr for all these deals.
