ADIA to Invest ₹4,966.80 Crore in Reliance Retail Ventures
Mumbai (Maharashtra) [India], October 7 (ANI): Reliance Retail Ventures Limited (RRVL) announced on Friday that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest ₹4,966.80 crore into RRVL, a subsidiary of Reliance Industries Limited.
Valuation and Equity Stake
This investment values RRVL’s pre-money equity at ₹8.381 lakh crore, ranking it among India’s top four companies by equity value. According to Reliance Retail’s media release, ADIA’s investment will result in a 0.59 percent equity stake in RRVL on a fully-diluted basis.
RRVL’s Expansive Retail Network
RRVL, along with its subsidiaries and associates, operates India’s largest and fastest-growing retail business, serving 267 million loyal customers. The company boasts an integrated omnichannel network, encompassing over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle, and pharmaceuticals.
Vision for Indian Retail Sector
RRVL aims to revolutionize the Indian retail sector through an inclusive strategy that serves millions of customers, empowers micro, small, and medium enterprises (MSMEs), and fosters collaborations with global and domestic firms. This approach is designed to provide significant benefits to Indian society while creating employment opportunities for millions of Indians.
New Commerce Business Transformation
The New Commerce business of RRVL has digitally transformed over 3 million small and unorganized merchants, enabling them to utilize technology tools and an efficient supply chain infrastructure to offer enhanced value to their customers.
Statements from Executives
Isha Mukesh Ambani, Executive Director of Reliance Retail Ventures Limited, expressed her satisfaction with the deepening relationship with ADIA. She said, “We are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures Limited. Their long-standing experience of over decades of value creation globally will further benefit us in implementing our vision and driving transformation of the Indian retail sector. ADIA’s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy, and execution capabilities.”
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, remarked, “Reliance Retail has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace. This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end-markets. We are pleased to partner with the Reliance Group and increase our exposure to India’s dynamic and fast-growing consumer sector.”
Parent Company Overview
Reliance Industries Limited (RIL), the parent company of RRVL, is India’s largest private sector enterprise, with diverse interests spanning hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, renewables, retail, and digital services. RIL consistently ranks among the world’s largest and most influential companies, highlighting its significant global footprint.
Transaction Approvals and Advisers
This transaction is subject to customary approvals. Morgan Stanley served as the financial advisor to Reliance Retail Ventures Limited, while Cyril Amarchand Mangaldas and Davis Polk and Wardwell acted as legal counsels.
