Saudi Arabia’s PIF invests ₹9,555 cr in RIL’s retail arm
The sovereign wealth fund will pick up a 2.04% stake in Reliance Retail Ventures
Billionaire Mukesh Ambani-run Reliance Industries Ltd’s retail arm Reliance Retail Ventures Ltd (RRVL) on Thursday raised ₹9,555 crore from Public Investment Fund (PIF) of Saudi Arabia, taking total fundraise in the last two months to ₹47,265 crore.
PIF will take a 2.04% stake in RRVL, Reliance Industries said in a statement.
The investment values RRVL, the retail arm of Reliance Industries Ltd, at a pre-money equity value of ₹4.587 lakh crore.
This is second investment by the Saudi Arabian sovereign wealth fund in an Ambani firm. It had previously picked up 2.32% stake in Jio Platforms, the digital and telecom arm of Reliance, for ₹11,367 crore.
“This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment,” the statement said.
“The transaction is in line with PIF’s strategy as a leading global investor with a proven track-record of investing in innovative and transformative companies globally and develop strong partnerships with leading groups in their respective markets,” it added.
India’s retail sector is one of the largest in the world and accounts for over 10% of its gross domestic product (GDP) which presents meaningful growth potential.
Ambani, Chairman and Managing Director of Reliance Industries, said: “We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia.
“I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants.” Yasir Al-Rumayyan, governor of PIF, said: “We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India’s most exciting sectors. This transaction demonstrates PIF’s commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors.” “This investment further demonstrates PIF’s commitment to generating returns for the Saudi people and driving the economic diversification of Saudi Arabia,” he said.
Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fast-growing retail business serving close to 640 million footfalls at its 12,000 stores across the country.
Reliance Retail’s vision is to galvanise the Indian retail sector through its new commerce strategy, serving millions of customers by empowering millions of micro, small and medium enterprises (MSMEs), the Indian firm said.
RRVL had previously raised ₹37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and Abu Dhabi Investment Authority (ADIA).
The investments equip Reliance Retail with funds to compete in both offline and online formats.
Reliance Retail Ltd operates about 12,000 stores in nearly 7,000 towns.