ADIA considers $600M investment in Reliance Retail: Latest update

Reliance introduces swappable, multipurpose EV batteries for clean energy

The Abu Dhabi Investment Authority (ADIA) is currently exploring the possibility of expanding its stake in Mukesh Ambani’s dynamic retail empire. Recent reports from the Economic Times indicate that ADIA is considering a substantial investment of $600 million into Reliance Retail.

This move comes after ADIA initially invested in Reliance Retail Ventures in October 2020, securing a 1.2% stake for ₹5,512.50 crore.

In a significant development earlier this week, Reliance Industries Limited’s (RIL) retail division successfully received a total subscription of ₹2,069.50 crore from the prominent global investment firm, KKR. Consequently, KKR’s equity shareholding in Reliance Retail Ventures Limited (RRVL) increased from 1.17% to 1.42%.

Furthermore, RIL recently obtained ₹8,278 crore from the Qatar Investment Authority (QIA) in exchange for approximately 1% stake in RRVL, valuing the retail arm at ₹8.278 lakh crore (USD 100 billion).

In 2020, RRVL orchestrated a substantial fundraising endeavor, raising ₹47,265 crore (approximately $6.4 billion) from global private equity funds. This infusion of capital allowed the company to secure a 10.09% stake and positioned RRVL at a valuation exceeding ₹4.2 lakh crore. Notably, this fundraising initiative marked a significant milestone within the sector at the time.

Investors such as Silver Lake, KKR, Mubadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic, and Saudi Arabia’s Public Investment Fund demonstrated their confidence in RRVL by participating in the funding round. Their collective investments valued the company at approximately $57 billion during that period.

Reliance Retail Ventures Limited is actively pursuing a robust expansion strategy, encompassing acquisitions of various companies and the acquisition of franchise rights for leading international brands operating within India. Additionally, it is making substantial investments in enhancing its infrastructure, recently acquiring the Indian operations of the renowned German retail giant, Metro Cash and Carry.

In its most recent annual report, RIL proudly announced that Reliance Retail had achieved a remarkable milestone, surpassing a billion transactions. Furthermore, its registered user base has surged to an impressive 249 million. The company boasts an extensive network of over 18,500 stores and digital commerce platforms, catering to diverse segments such as grocery, consumer electronics, fashion & lifestyle, and pharmaceutical products.

For the fiscal year 2023, Reliance Retail’s digital commerce and new commerce segments made a substantial contribution, accounting for 18% of the company’s total revenue, which amounted to ₹2.60 lakh crore. This achievement underscores Reliance Retail’s continuous growth and adaptability in the ever-evolving retail landscape.

About Reliance Retail:

Reliance Retail Limited manages a network of convenience stores, supermarkets, specialty outlets, and online retail platforms. The company offers a wide range of products, including fresh produce like vegetables, fruits, and flowers, as well as processed foods, cereals, spices, beverages, dairy products, groceries, health and personal care items, jewelry, apparel, footwear, and accessories. Reliance Retail caters to customers throughout India.

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