Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries (RIL), said on Friday that a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 4,966.80 crore in the company.
The investment values RRVL at a pre-money equity value of Rs 8.38 trillion, making it among the top four firms by equity value in the country. The investment will translate into an equity stake of 0.59% in RRVL on a fully-diluted basis, RRVL said in a statement.
“We are pleased to further deepen our relationship with ADIA with their continued support as an investor in RRVL,” Isha Mukesh Ambani, executive director at RRVL, said. The Abu Dhabi investor’s experience of value creation will help Reliance Retail drive the transformation of the Indian retail sector, she said.
RRVL operates India’s largest and most profitable retail business serving 267 million customers. It has a network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
The investment is further testament to ADIA’s belief in the Indian economy and RRVL’s business fundamentals, Ambani added.
Morgan Stanley was the financial advisor to RRVL and Cyril Amarchand Mangaldas and Davis Polk & Wardwell were the legal counsel.
Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA, said: “This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end-markets.”