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Business News/ Companies / News/  Reliance Retail in talks with Gulf, Singapore funds on $1.5 billion investment: Report
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Reliance Retail in talks with Gulf, Singapore funds on $1.5 billion investment: Report

Reliance Retail is in talks with existing investors including the sovereign wealth funds of Singapore, Abu Dhabi and Saudi Arabia for combined new investments of around $1.5 billion, according to a report by news agency Reuters.

A woman walks past a poster of Reliance Industries installed outside the venue of the company's annual general meeting in Mumbai REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS) - RTR3380DPremium
A woman walks past a poster of Reliance Industries installed outside the venue of the company's annual general meeting in Mumbai REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS) - RTR3380D

Reliance Retail is in talks with existing investors including the sovereign wealth funds of Singapore, Abu Dhabi and Saudi Arabia for combined new investments of around $1.5 billion. The discussions of India's largest retailer with investors are part of an internal target to raise $3.5 billion which the company wants to close by the end of this month, according to a report by news agency Reuters. Out of that, QIA last month announced a $1 billion investment and KKR & Co this week $250 million.

Singapore's GIC, the Abu Dhabi Investment Authority (ADIA) and Saudi Arabia's Public Investment Fund (PIF) are looking to invest at least $500 million each in Reliance Retail at a valuation of $100 billion, sources told Reuters. Some of the three investors could end up putting in less than $500 million, and talks were also on with at least one or two further investors for the fund raising, said the report.

"All the three investors have evaluated the company quite seriously," said the first of the three sources, all of whom declined to be named as the discussions are private.

The final investments or funding plans could still change. GIC, PIF and ADIA are among the world's biggest investment funds and together they own a 4.4 per cent stake in the retailer. Reliance Industries, the retail arm's parent, also has plans to invest in the ongoing fund raising round of $3.5 billion, the report added.

Reliance sold a 10.09 per cent stake in its retail unit in 2020, valuing it at 4.68 trillion. At that time, GIC and ADIA invested $664 million each, while PIF pumped in $1.15 billion, based on the current exchange rates.

When ADIA invested in Reliance Retail in 2020, it said it was part of its strategy of targeting market leading businesses in Asia linked to the region's consumption-driven growth, according to the report.

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Published: 13 Sep 2023, 03:39 PM IST
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