PIF invests ₹9,555 crore in RIL’s retail arm1 min read . Updated: 06 Nov 2020, 06:34 AM IST
- This will be the second such investment by the Saudi sovereign wealth fund in an RIL unit this year
Saudi Arabia’s Public Investment Fund (PIF) will invest ₹9,555 crore for a little over 2% in Reliance Industries Ltd’s (RIL) retail unit, taking total investments into India’s largest retailer to about ₹47,265 crore.
This will be the second such investment by the Saudi sovereign wealth fund in an RIL unit this year. PIF had earlier acquired a 2.32% stake in Jio Platforms Ltd, the digital services subsidiary of RIL, for about ₹11,367 crore.
This is also the eighth such investment by marquee investors in Reliance Retail Ventures in less than two months. The latest investment values the company at ₹4.587 trillion ($62.4 billion). Including this transaction, RIL has so far sold about 10% in Reliance Retail Ventures.
Some of the marquee investors that have invested in Reliance Retail include Silver Lake Holdings, KKR and Co. and General Atlantic. Other investments into Reliance Retail so far this year have come in at an equity value of ₹4.28 trillion.
“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," said Mukesh Ambani, chairman and managing director of RIL.
Reliance Retail holds all of the parent’s retail assets, operating India’s largest retail business with 12,000 stores. In the second quarter of the fiscal, its revenue from operations stood at ₹36,566 crore.
PIF’s investment in Reliance Retail comes at a time when it is planning to complete a deal with Future Retail Ltd. The deal is, however, facing a legal challenge from Amazon.com Inc., which has obtained an interim stay against the sale from an arbitrator in Singapore. The US retailer has since requested the markets regulator to refrain from approving the transaction. In the latest turn in the feud, the US e-commerce firm has filed a caveat in the Delhi high court. Future group has also filed its own caveat.
Though RIL is not a party to any of the proceedings, it has declared its intent to complete the transaction.