ADIA looks to invest $600M in Reliance Retail: Report
In October 2020, ADIA had purchased 1.2% stake in Reliance Retail Ventures (RRVL) for Rs 5,512.50 crore.
Abu Dhabi Investment Authority (ADIA) is considering buying additional stake in Mukesh Ambani's Reliance Retail.
ADIA is seeking to invest $600 million in said a report by The Economic Times.
The news came weeks after a report suggested that Reliance Retail is in talks with Saudi Arabia, Abu Dhabi, and Singapore sovereign wealth funds for a combined $1.5 billion in fresh investments, following a previous report.
ADIA invested in Reliance Retail Ventures (RRVL), purchasing a 1.2% stake for ₹5,512.50 crore in October 2020. The company raised Rs 47,265 crore by selling a 10.09% stake to investors including Saudi PIF, Mubadala, GIC of Singapore, Silverlake, TPG, and GA.
Last month, Qatar Investment Authority's subsidiary invested Rs 8,278 crore into RRVL, valuing it at a pre-money equity value of Rs 8.278 lakh crore. This resulted in a minority stake of 0.99% on a fully-diluted basis.
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Furthermore, the retail arm of RIL also received the full subscription amount of ₹2,069.50 crore from global investment firm KKR, allotting 1.71 crore shares, raising its stake to 1.42%, valuing it at a pre-money equity value of Rs 8.36 lakh crore.
RRVL has an estimated net debt of Rs 33,200 crore in FY25, with an enterprise value of Rs 8.6 lakh crore and an equity per share value of Rs 1,200. The company has indicated interest from financial and global strategic investors in its retail business.
RRVL operates an omnichannel network with over 18,500 stores and digital commerce platforms in various sectors. It partners with three million merchants through its New Commerce initiative.
The company reported a consolidated turnover of Rs 260,364 crore ($31.7 billion) and a net profit of Rs 9,181 crore ($1.1 billion) for the year ended March 31, 2023.
Having raised funds from Silver Lake, KKR, Mubadala, ADIA, GIC, TPG, General Atlantic and Saudi Arabia's Public Investment Fund, the company was valued at around $57 billion.
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