Qatar Investment Authority (QIA) will invest Rs 8,278 crore
($1 billion) to acquire 0.99 per cent stake in Reliance Retail Ventures Limited, a unit of Mukesh Ambani-led Reliance Industries.
The new investment values the company at Rs 8.28 lakh crore or around $100 billion. The company’s valuation has almost doubled in the past three year. It was valued at Rs 4.21 lakh crore in 2020, when the firm raised Rs 47,265 crore by selling stakes to various global investors.
“QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market,” said Mansoor Ebrahim Al-Mahmoud, CEO of Qatar Investment Authority.
Reliance Retail Ventures Limited, through its subsidiaries and associates, operates India’s largest organised retail business chain. The company claims to have an integrated omni-channel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
“We look forward to benefiting 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,” Isha Ambani, Director or Reliance Retail Ventures Limited, said in a statement.
For this transaction, 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 for QIA.
Published 23 August 2023, 23:15 IST