Qatari Fund To Invest $997 Mln In Reliance Retail Ventures

Qatar’s sovereign wealth fund will invest 8,278 crore rupees ($997 million) in Reliance Retail Ventures Ltd. (RRVL) to acquire a 1% stake in the subsidiary of Reliance Industries Ltd.

Qatar Investment Authority (QIA) will proceed with the transaction through its wholly owned subsidiary to acquire a minority equity stake of 0.99% in RRVL on a fully diluted basis, the Indian conglomerate’s retail arm said in a stock exchange announcement.

RRVL said QIA’s investment comes as the Qatari fund seeks to further invest in India’s fast-growing economy. The investment values RRVL at a pre-money equity value of 8.278 lakh crore rupees, among the top four companies by total equity value in the country, it added.

“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,” RRVL Director Isha Mukesh Ambani said.

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

AZB and Cleary Gottlieb acted as legal counsel to QIA.

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.

Note: $1 = 83.0482 Indian rupees

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