The investment values the subsidiary of Reliance Industries Ltd at a pre-money equity value of Rs 8.38 lakh crore, making Reliance Retail among the top four companies by equity value in the country.
This is the third investment deal in three months that Reliance Retail has forged, as it plans to galvanize the Indian retail sector by working closely with global and domestic companies as a preferred partner.
In September, global private equity firm Kohlberg Kravis Roberts, popularly known as KKR, invested Rs 2,070 crore in Reliance Retail Ventures and raised its stake to 1.42% from 1.17% in the retail behemoth.
The follow-on investment by KKR also valued Reliance Retail at Rs 8.36 lakh crore, which is double the valuation it got during the fundraising in 2020. In 2020, KKR had invested Rs 5,550 crore in Reliance Retail.
The investment by KKR followed Qatari sovereign wealth fund Qatar Investment Authority’s $1 billion investment in Reliance Retail in August for a nearly 1% stake.
“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,” said Hamad Shahwan Aldhaheri, executive director of private equities department at ADIA. Through partnership with the Reliance Group, ADIA has increased exposure to India’s dynamic and fast-growing consumer sector.
Morgan Stanley was the financial advisor to Reliance Retail, and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.
On Friday, shares of RIL ended 0.2% higher at Rs 2,318 on the National Stock Exchange.
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