In less than a month, Reliance Industries Ltd has raised a total of Rs 37,710 crore in exchange of 8.48 per cent stake in Reliance Retail Ventures Ltd (RRVL).
RIL share price jumped over 4 per cent in early trade on BSE to trade at Rs 2,305.20 apiece, a day after Mukesh Ambani-controlled company announced Rs 5,512.5 crore investment from the Abu Dhabi Investment Authority (ADIA) in its retail business. In less than a month, Reliance Industries Ltd has raised a total of Rs 37,710 crore in exchange of 8.48 per cent stake in Reliance Retail Ventures Ltd (RRVL). The Abu Dhabi Investment Authority (ADIA) investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. The oil-to-telecom conglomerate has received investment from over half a dozen global firms including Silver Lake, KKR, General Atlantic, Abu Dhabi sovereign wealth fund Mubadala Investment Co, GIC, TPG and ADIA.
From March lows of Rs 868, RIL shares have rallied over 165 per cent on back to back investments in digital and retail businesses. Prior to ADIA investment, Singapore’s sovereign wealth fund General Atlantic and global investment firm TPG announced to put in Rs 7,350 crore for a total of 1.6 per cent equity stake in RIL’s retail business. So far, RIL has announced seven such investment deals for Reliance Retail Ventures Ltd.
So far of the 13 investors in RIL’s digital arm Jio Platforms, six have already invested in Reliance Retail Ventures Ltd. Of the 13 global investors in Reliance Jio, four investors, Facebook, Google, Qualcomm, Intel, were strategic and technology majors. For the year ended March 31, 2020, RIL posted a consolidated turnover of Rs 659,205 crore, cash profit of Rs 71,446 crore, and net profit of Rs 39,880 crore. While RRVL reported a consolidated turnover of Rs 162,936 crore and net profit of Rs 5,448 crore for the year ended March 31, 2020.
Around 10.25 AM, RIL shares were trading 4.12 per cent higher at Rs 2,304.80 apiece, as compared to a 0.69 per cent rise in the S&P BSE Sensex. At the time of writing, total market capitalisation of RIL stood at Rs 15.55 lakh crore.