ADIA invests ~5,512 cr in Reliance Retail
ADIA to invest र5,512 cr for 1.2-per cent stake
Reliance Industries (RIL) on Tuesday said that the Abu Dhabi Investment Authority (ADIA) would invest ~5,512.50 crore into subsidiary Reliance Retail Ventures (RRVL) for 1.2-per cent stake. This is the eighth deal to be announced by the Mukesh Ambani-led firm in four weeks, stepping up its stake-sale process that has seen marquee investors back the firm so far. The valuation of the company remains at ~4.2 trillion.
Reliance Industries (RIL) on Tuesday said that the Abu Dhabi Investment Authority (ADIA) would invest ~5,512.5 crore in subsidiary Reliance Retail Ventures (RRVL) for 1.2-per cent stake.
This is the eighth deal to be announced by the Mukesh Ambani-led firm in four weeks, stepping up its stakesale process that has seen marquee investors back the firm so far. The valuation of the company, however, remains at ~4.2 trillion — a worrying sign, say sector experts.
Analysts were expecting the valuation of the firm to touch at least ~4.5 trillion, as the stake-sale process proceeded. It hasn’t happened so far.
On Tuesday, RIL closed trade at ~2,210.15 per share on the BSE — down 0.05 per cent over the previous day’s close. So far, RRVL has raised ~37,710 crore, offloading 8.48 per cent stake to investors. Analysts say that Reliance will complete small deals with financial investors, although induction of a strategic investor into the company cannot be ruled out to strengthen its backend and supply-chain management.
Last week, the company had announced four transactions — one by General Atlantic for ~3,675 crore, which would pick up 0.84-per cent stake in the firm. The second was by the co-investors of private equity giant Silver Lake, which would invest an additional ~1,875 crore in RRVL. This would take the combined investment by Silver Lake and its co-investors in RRVL to ~9,375 crore in exchange for 2.13 per cent stake.
On Saturday, GIC and TPG said they would put ~5,512.50 crore and ~1,837.50 crore, respectively, into the company for 1.22-per cent and 0.41-per cent stake, respectively, in the firm. The week earlier, KKR had put ~5,550 crore for 1.28 per cent in the firm.
Speculation is rife that tech investors may come on board, although a Reliance spokesperson said the company would not comment on market speculation. “...We have made and will continue to make necessary disclosures in compliance with our obligations under Sebi and our agreements with the stock exchanges,” the spokesperson said.
RRVL though has given the option to investors in Jio Platforms to consider backing the former as it seeks to unlock value. So far, the investors in RRVL are ones who had invested earlier in Jio Platforms. RRVL remains the largest organised retail player, with the firm announcing the acquisition of the retail, wholesale, and logistics assets of Future Group in a ~25,000-crore transaction.