Qatar Investment Authority To Invest Rs 8278 Crores In Reliance Retail
Qatar Investment Agency (QIA) to invest ₹8,278 crores in Reliance Retail Ventures Ltd.(RRVL) at an equity value of ₹8.278 lakh crores. This translates to $1.1 billion QIA investment, which would value RRVL at $111 billion. The transaction values RRVL among the top four companies by total equity value in the country; QIA’s investment comes as the Qatari fund seeks to further invest in India’s fast-growing economy, Reliance News and Media release said.
The QIA investment would be through a wholly owned subsidiary in RRVL which is a subsidiary of Reliance Industries Ltd. The investment would value RRVL at a pre-money equity value of ₹ 8.278 l lakh crores and the investment will translate into a minority equity stake of 0.99% in RRVL on a fully-diluted basis.
Previously, in 2020, RRVL had raised funds from global investors of an aggregate amount of ₹ 47,265 crore at a pre-money equity value of ₹ 4.21 lakh crores.
On this, Ms Isha Mukesh Ambani, Director, Reliance Retail Ventures Limited, said, “We are delighted to welcome QIA as an investor in Reliance Retail Ventures Limited. We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world class institution, driving transformation of the Indian retail sector. 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.”
Mansoor Ebrahim Al-Mahmoud, CEO, QIA, said, “QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market. We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India.”
Morgan Stanley acted as financial advisor to Reliance Retail Ventures Limited and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Goldman Sachs, acting as financial advisor to RIL, advised on the process and transaction structuring.
AZB and Cleary Gottlieb acted as legal counsel to QIA.
The 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 and has partnered with over 3 million merchants through its New Commerce initiative.
Qatar Investment Authority (“QIA”) is the sovereign wealth fund of the State of Qatar. Founded in 2005, QIA invests across a wide range of asset classes and regions as well as in partnership with leading institutions around the world.
