Abu Dhabi Fund To Invest $597 Mln In Reliance Retail Ventures

Abu Dhabi’s sovereign wealth fund will invest 4,966.80 crore rupees ($597 million) in Reliance Retail Ventures Ltd. (RRVL) to acquire a 0.59% stake in the subsidiary of Reliance Industries Ltd.

Abu Dhabi Investment Authority (ADIA) will make the investment through its wholly owned subsidiary, the Indian conglomerate’s retail arm said in a stock exchange announcement.

The investment, subject to customary approvals, values RRVL at a pre-money equity value of 8.381 lakh crore, it added.

“We are pleased to further deepen our relationship with ADIA with their continued support as an investor,” said RVL Executive Director Isha Mukesh Ambani. “Their long-standing experience of over decades of value creation globally will further benefit us in implementing our vision and driving transformation of the Indian retail sector.”

RRVL, through its subsidiaries and affiliates, operates an integrated omni-channel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle and pharma consumption baskets, according to the statement.

Hamad Shahwan Aldhaheri, executive director of the Private Equities Department at ADIA, said RRVL has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace. “This investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end-markets,” he added.

Morgan Stanley acted as financial advisor to RRVL, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.

RRVL recently also attracted investments of 2,069.50 crore rupees from private equity firm KKR and 8,278 crore rupees from Qatar’s sovereign wealth fund.

Note: $1 = 83.185 Indian rupees

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