BackMubadala invests in RIL’s retail arm
The sovereign wealth fund of Abu Dhabi to invest ₹6,247.5 crore in Reliance Retail Ventures LtdMubadala will receive a 1.4% stake in RRVL on a fully diluted basis, RIL says
PremiumMubadala Investment Co., the sovereign wealth fund of Abu Dhabi, will invest ₹6,247.5 crore in the retail unit of Reliance Industries Ltd, joining a growing line of global investors seeking to capitalize on India’s booming retail market.
The investment values Reliance Retail Ventures Ltd (RRVL) at around ₹4.28 trillion. Mubadala will receive a 1.4% stake in RRVL on a fully diluted basis, RIL said in a statement.
This marks the fourth investment in Reliance Retail, taking the total fundraising so far to almost ₹24,800 crore. It is also the second major investment by Mubadala in an RIL unit after its $1.2 billion investment in Jio Platforms in June. Mint reported in September that investors in Jio Platforms such as Mubadala and Abu Dhabi Investment Authority are in talks to also invest in Reliance Retail.
“We value the partnership with a knowledge-rich organization like Mubadala and acknowledge their confidence in our mission to strengthen the core of India’s retail sector —the millions of small retailers, merchants and shopkeepers—through the power of technology. Mubadala’s investment and guidance will be an invaluable support in this journey," said Mukesh Ambani, RIL’s chairman and managing director.
The investment from Mubadala comes a day after US private equity investor General Atlantic invested ₹3,675 crore in Reliance Retail and US tech investor Silver Lake Partners decided to invest an additional ₹1,875 crore in the retailer. RIL announced a ₹7,500 crore investment by Silver Lake for a 1.75% stake in Reliance Retail on 9 September.
Silver Lake’s was the first investment in Reliance Retail after Ambani raised around ₹1.5 trillion through stake sales in Jio Platforms. The private equity firm had earlier picked up a 2.08% stake for $1.34 billion in Jio Platforms.
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