Mumbai, India – October 7th: In a significant development, Reliance Retail Ventures Limited (RRVL) has unveiled a major infusion of capital. RRVL has announced that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) is set to invest a substantial sum of Rs 4,966.80 crore into RRVL, a subsidiary of Reliance Industries Limited.
This substantial transaction has elevated RRVL’s pre-investment equity valuation to an impressive Rs 8.381 lakh crore, positioning it firmly among India’s top four companies by equity value.
According to a press release from Reliance Retail, ADIA’s investment will secure a 0.59 percent equity stake in RRVL on a fully-diluted basis.
RRVL, in conjunction with its subsidiaries and associates, operates India’s largest and most rapidly expanding retail conglomerate, serving an impressive 267 million loyal customers.
The company takes pride in its integrated omnichannel network, which spans over 18,500 physical stores and digital commerce platforms across various sectors, including grocery, consumer electronics, fashion and lifestyle, and pharmaceuticals.
RRVL’s vision is to revolutionize the Indian retail sector through an inclusive strategy. This approach is centered on serving millions of customers, empowering micro, small, and medium enterprises (MSMEs), and fostering partnerships with both global and domestic firms.
The ultimate goal is to deliver substantial benefits to Indian society while concurrently creating numerous employment opportunities for millions of Indians.
Notably, RRVL’s New Commerce business has already digitally transformed over 3 million small and unorganized merchants. This transformation equips these merchants with the necessary technological tools and an efficient supply chain infrastructure to provide enhanced value to their customers, as per the official release.
Isha Mukesh Ambani, Executive Director of Reliance Retail Ventures Limited, expressed her satisfaction with this development, stating, “We are pleased to deepen our relationship with ADIA with their continued support as investors in Reliance Retail Ventures Limited. Their decades of experience in global value creation will further strengthen our ability to realize our vision and drive the transformation of the Indian retail sector. ADIA’s investment in RRVL underscores their belief in the Indian economy and our business fundamentals, strategy, and execution capabilities.”
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, also commented on the investment, noting, “Reliance Retail has demonstrated remarkable growth and adaptability in a market that is evolving at an unprecedented pace. This investment aligns perfectly with our strategy of supporting portfolio companies that are reshaping their respective markets. We are thrilled to partner with the Reliance Group and expand our presence in India’s dynamic and rapidly growing consumer sector.”
Reliance Industries Limited (RIL), the parent company of RRVL, stands as India’s largest private sector enterprise. Its diverse interests encompass hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, renewables, retail, and digital services.
RIL consistently ranks among the world’s largest and most influential companies, underscoring its significant global presence.
It’s important to note that this transaction is subject to customary approvals, with Morgan Stanley serving as the financial advisor to Reliance Retail Ventures Limited, and Cyril Amarchand Mangaldas and Davis Polk and Wardwell providing legal counsel.