QIA To Invest ₹8,278 Cr In Reliance Retail Ventures At An Equity Value Of ₹8.278 Lakh Crore

Reliance Retail Ventures Limited (RRVL) on Wednesday announced that Qatar Investment Authority (QIA), through a wholly-owned subsidiary, will invest Rs 8,278 crore into RRVL, a subsidiary of Reliance Industries Limited, the company announced through an exchange filing.

This investment values RRVL at a pre-money equity value of Rs 8.278 lakh crore.

RRVL, through its subsidiaries and associates, operates India's largest, fastest growing, and most profitable retail business serving 267 million loyalty customers with an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.

QIA’s investment will translate into a minority equity stake of 0.99 percent in RRVL on a fully-diluted basis. The previous fund-raise round by RRVL in 2020 from various global investors of an aggregate amount of Rs 47,265 crore was done at a pre-money equity value of Rs 4.21 lakh crore.

“We are delighted to welcome QIA as an investor in Reliance Retail Ventures Limited. We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world class institution, driving transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards Indian economy and Reliance’s retail business model, strategy and execution capabilities,” said Isha Mukesh Ambani, Director, Reliance Retail Ventures Limited.

“QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market. We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India,” said Mansoor Ebrahim Al-Mahmoud, CEO, QIA.

Financial Advisors and Legal Counsels

Morgan Stanley acted as financial advisor to Reliance Retail Ventures Limited and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Goldman Sachs, acting as financial advisor to RIL, advised on the process and transaction structuring.

AZB and Cleary Gottlieb acted as legal counsel to QIA.

Reliance Industries Limited shares

The shares of Reliance Industries Limited on Wednesday at 3:30pm IST were at Rs 2,518.20, down by 0.048 percent.