Mumbai: The Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.50 crore in Reliance Retail Ventures Limited (RRVL). Reliance Industries Limited and Reliance Retail Ventures announced this on Tuesday.
RRVL is a subsidiary of Reliance Industries. This new investment has made Reliance Retail Pre-Money Equity worth Rs 4.285 trillion. ADIA has purchased a 1.20% equity stake of Reliance Retail Ventures on the basis of Fully Diluted.
Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA, together with the current business, have raised Rs 37,710 crore in the last four weeks. It is India’s largest and fastest growing and most profitable industry. It has over 12 thousand stores nationwide. RRVL aims to serve millions of consumers by strengthening the MSME sector of India’s farmers.
Reliance Industries Chairman and Managing Director Mukesh Ambani said, “ADIA is very pleased with the current investment. It has been creating value for more than four decades with its continued support and promise to benefit from a strong global background. This is another example of Reliance Retail’s ability and performance. He said a new business model was being prepared.
Hamad Shawan Aldheri, Executive Director at ADIA, said, “Reliance Retail has quickly evolved into one of India’s leading retail businesses. It also has the strength of its physical and digital supply network. Further development of the RRVL is in complementary condition. “Part of our strategy is to invest in a regional part of Asia where high consumption-oriented growth and technology development are accelerating,” he said.
ADIA was founded in 1976. The government of Abu Dhabi has invested in various investment firms globally. ADIA is focused on creating value in the long run. The transaction will be finalized based on regulators and other approvals. Morgan Stanley has been a financial advisor, and Cyril Amar Chand has been with Reliance Retail as Mangal Das and Davis Polk and Wardwell as legal counsel.
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