Qatar Investment Authority to invest Rs 8,278 Cr in Reliance Retail

Reliance industries on Wednesday said that Qatar Investment Authority (QIA), through a wholly-owned subsidiary, will invest Rs 8,278 crore in its retail arm, Reliance Retail Ventures Limited (RRVL).

"This investment values RRVL at a pre-money equity value of Rs 8.278 lakh crore," Reliance Industries said in a regulatory filing.

Reliance Retail, through its subsidiaries and associates, operates India's largest retail business with an integrated omnichannel network of over 18,500 stores.

"QIA's investment will translate into a minority equity stake of 0.99% in RRVL on a fully diluted basis," it added.

RRVL Director Isha Mukesh Ambani said, "We are delighted to welcome QIA as an investor in Reliance Retail Ventures Ltd. We look forward to benefitting from QIA's global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world-class institution, driving the transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards the Indian economy and Reliance's retail business model, strategy and execution capabilities."

Mansoor Ebrahim Al-Mahmoud, CEO of QIA, said, "QIA is committed to supporting innovative companies with high-growth potential in India's fast-growing retail market. We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India."

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RRVL, which is the leading retailer in the country, is aggressively expanding its business by acquiring companies and getting franchise rights of leading international brands for the Indian market.

Its board had, on July 4, 2023, approved a proposal in which shares held by such shareholders shall stand cancelled and extinguished as per the capital reduction plan.

In 2020, RRVL had raised Rs 47,265 crore (around $6.4 billion) from global private equity funds for a 10.09% stake, valuing the company at more than Rs 4.2 lakh crore.

This was the largest fundraising exercise in the sector at that time.

The company had raised funds from Silver Lake, KKR, Mubadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic and Saudi Arabia's Public Investment Fund at a valuation of around $57 billion at that time.