Abu Dhabi Investment Authority (ADIA) is mulling to buy additional stake in Mukesh Ambani’s retail empire. According to a report by the Economic Times, ADIA is seeking to invest $600 million in Reliance Retail.
ADIA has already invested in the Reliance Retail Ventures, by purchasing a 1.2% stake for ₹5,512.50 crore in October 2020.
Earlier this week, RIL’s retail arm received the full subscription amount of ₹2,069.50 crore from the global investment firm KKR and has allotted 1.71 crore equity shares.
Also read: Reliance Retail in talks with Gulf, Singapore funds on $1.5 billion investment: Report
Following the share allotment, KKR’s shareholding in RRVL has increased to 1.42% from 1.17%.
Earlier this month, RIL received ₹8,278 crore from Qatar Investment Authority (QIA) for around 1% stake in RRVL at a valuation of ₹8.278 lakh crore (USD 100 billion).
Also read: KKR to invest ₹2,069 cr in Reliance Retail, raise stake to 1.42%
In 2020, RRVL raised ₹47,265 crore (around $6.4 billion) from global private equity funds for a 10.09% stake, valuing the company at more than ₹4.2 lakh crore.
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This was the largest fundraising exercise in the sector at that time.
The company had raised funds from Silver Lake, KKR, Mubadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic, and Saudi Arabia’s Public Investment Fund at a valuation of around $57 billion at that time.
Also read: Reliance Retail acquires majority stake in Alia Bhatt’s Ed-a-Mamma brand
RRVL is aggressively expanding its business by acquiring companies and getting the franchise rights of leading international brands for India.
Besides, it is investing in scaling up infrastructure and also acquired the India business of German retail major Metro Cash and Carry.
In its latest annual report, RIL said Reliance Retail had achieved a significant milestone of crossing a billion transactions and its registered user base has grown to 249 million.
It operates a network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
In FY23, Reliance Retail’s digital commerce and new commerce businesses contributed 18% of its revenue, which stood at ₹2.60 lakh crore.
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Updated: 27 Sep 2023, 08:34 AM IST