ADIA to invest $752mn in India’s Reliance Retail

The sovereign wealth fund Abu Dhabi Investment Authority (ADIA) will make an investment of  $752 million in India’s Reliance Retail, to become the seventh investor in less than four weeks to invest in the Mukesh Ambani owned company. 

The investment by ADIA in Reliance Retail Ventures Limited (RRVL) is in exchange for a 1.2 percent share, at a pre-money equity valuation of $58.5 billion. 

RRVL has now accumulated about $513.07 billion integrated from global investors including Silver Lake, KKR & Co., General Atlantic, Mubadala, GIC and TPG other than ADIA by selling about an 8.5 percent share in its business, RIL said in a statement. 

Mukesh Ambani, chairman and managing director of Reliance Industries said, “We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally. The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational New Commerce business model that it is rolling out.”

The oil-to-telecom Indian conglomerate has constantly aimed at diversifying its business spectrum and expanding its retail sector. Currently, Reliance Retail is India’s largest and fastest-growing business with about 12,000 physical stores in more than 6,500 cities and towns. 

During the pandemic, the company focused more on the grocery sector and even launched JioMart marking a rivalry with its peers like Amazon and Walmart backed Flipkart. Recently, Reliance Industries Netmeds to make a presence in online pharmacy also.

“Reliance Retail has rapidly established itself as one of the leading retail businesses in India and by leveraging both its physical and digital supply chains, is strongly positioned for further growth. This investment is consistent with our strategy of investing in market-leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement.”

ADIA

The sovereign wealth fund ADIA was founded in 1976 and is a globally-diversified investment institution that invests funds for the Emirates government through a proposal targeted on long-term value creation.