Qatar Investment Authority is reportedly in negotiations to pick up stakes in Mukesh Ambani‘s Reliance Retail. A report published in the Financial Times said that the sovereign wealth fund of Qatar may take up minority stakes in Reliance Retail. The report adds that QIA is in talks to invest $1 billion that would giving it a 1 per cent stake in Reliance Retail. The report also said that valuation of business has been done at $100 billion. FE can’t independently verify FT’s report. So far, there has been no official confirmation from Ambani’s office. The report comes days after the industry mogul spoke about listing the retails ops. However, there has been no clear timeline for the same.
The Rs Rs 8,199 crore move would help Reliance Retail to accelerate its expansion. A PTI report quoting a Reliance Retail official said that the company looks at all ‘opportunities’ on ‘ongoing basis.’ However, the company spokesperson denied to comment on the QIA deal. Reliance Retail Ventures Ltd, a holding company of Reliance Industries, has been very active in acquiring franchise rights of global brands. In early July, Reliance Retail had said that the company was reducing the equity share capital. The company is aiming to reduce equity share capital to the extent held by shareholders other than its promoters and holding company RIL.
The latest buzz around comes after the 2020 fundraising by Reliance Retail. At Rs Rs 47,265 crore, this was the biggest fund-raising seen by the sector back then. In 2020, valuing company at $57 billion, Reliance Retail had raised funds from Saudi Arabia’s Public Investment Fund, Mubadala, Abu Dhabi Investment Authority, Silver Lake, General Atlantic among other global private equity funds.
Headed by Mukesh Ambani’s daughter Isha Ambani Piramal, Reliance Retail opened 555 stores in this quarter, the recently announced financial statement said. While announcing the quarterly numbers, RIL said that the company’s retail business posted an earnings of Rs 69,948 crore.