NEW DELHI: The Public Investment Fund (PIF) of Saudi Arabia will invest Rs 9,555 crore (approximately $1.3 billion) for an equity stake of 2.04 per cent in Reliance Retail Ventures Limited (RRVL), the Mukesh Ambani-led company said in an official release on Thursday.
This is the second investment by PIF in a subsidiary of Reliance Industries as it had earlier acquired 2.32 per cent stake in Jio Platforms. The investment values Reliance Retail at a pre-money equity value of Rs 4.58 lakh crore (approximately $62.4 billion).
“This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment,” the company said.
“The transaction is in line with PIF’s strategy as a leading global investor with a proven track-record of investing in innovative and transformative companies globally and develop strong partnerships with leading groups in their respective markets,” it added.
With this, the retail arm of Reliance Industries has received a total fundraised of Rs 47,265 crore in the last two months.
RIL chairman and managing director Mukesh Ambani said: “We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia.”
“I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants,” he added.
PIF is one of the largest and most impactful sovereign wealth funds in the world, driving the economic transformation of Saudi Arabia for the benefit of its people while helping shape the future global economy.
RRVL had previously raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and Abu Dhabi Investment Authority (ADIA).
Reliance Industries has sold a 10.52 per cent stake in the retail unit since September 9 for a total of Rs 47,265 crore.
With this, Jio Platforms and Reliance Retail account for over Rs 9 lakh crore of Reliance Industries Ltd’s valuation.
(With agency inputs)