QIA invests $1B in Reliance Retail at $100B valuation

Qatar Investment Authority (QIA) has invested Rs 8,278 crore (approximately $1 billion) in Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries.

RRVL is valued at $100 billion, or Rs 8.27 lakh crore, with this fresh investment from QIA, as per a report by Zawya.

The investment by QIA comes as the Qatari fund is looking to invest further in the fast-growing Indian economy. The investment also forms part of a wider shift in QIA's investment strategy away from trophy assets like the Shard and Harrods in London towards sectors like technology, healthcare, and public and private markets.

In a move seen as a sign of a possible IPO, Reliance Retail was recently valued at $92-96 billion by two global consultants.

On a fully diluted basis, QIA's investment will be converted into a minority equity stake of 0.99% in RRVL.

Reliance Retail Ventures, led by Mukesh Ambani's daughter Isha Ambani, operates retail operations, international partnerships, and consumer goods, including ecommerce and numerous outlets for electronics, clothing, and food products.

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It has partnered with global brands such as Burberry, Pret A Manger, and Tiffany to expand its presence in India. In 2020, the company raised about Rs 472.65 billion ($5.72 billion) from investors like KKR, General Atlantic, Saudi Public Investment Fund, and Mubadala.

Morgan Stanley acted as financial advisor for Reliance Retail Ventures and Goldman Sachs as process and transaction advisor for Reliance Industries.

Earlier, Saudi Arabia's Public Investment Fund (PIF) made an investment of Rs 9,555 crore for over 2% stake in RRVL in November 2020.

So far, the company has raised about $7.4 billion in seven rounds from investors including the Qatari and Saudi Arabian sovereign funds, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic, Mubadala, and Silver Lake.