Abu Dhabi's ADIA buys 1.2% in Reliance Retail Ventures for Rs5,512.50 cr

Reliance Industries Limited (RIL) and Reliance Retail Ventures Limited (RRVL) on Tuesday announced a Rs5,512.50-crore investment by Abu Dhabi Investment Authority (ADIA) into RRVL, which is equivalent to 1.20 per cent stake in RIL’s retail arm.

The investment values RRVL at a pre-money equity value of Rs4.285 lakh crore, RIL stated in a release.
With this investment, RRVL has raised Rs37,710 crore from leading global investors, including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.
Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its 12,000-odd stores nationwide. 
Reliance Retail has adopted an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, while protecting and generating employment for millions of Indians. 
Reliance Retail, through its New Commerce strategy, has started a transformational digitalisation of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants. This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.
“We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally. The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational New Commerce business model that it is rolling out,” Mukesh Ambani, chairman and managing director of Reliance Industries, said.
“Reliance Retail has rapidly established itself as one of the leading retail businesses in India and, by leveraging both its physical and digital supply chains, is strongly positioned for further growth. This investment is consistent with our strategy of investing in market leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement,” Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA, said. 
The transaction is subject to regulatory and other customary approvals, RIL stated.
Morgan Stanley acted as financial advisor and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels to Reliance Retail.