Billionaire Mukesh Ambani’s daughter Isha Ambani-led Reliance Retail is raising another round of funding to continue its further expansion in the country.
A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) has agreed to invest Rs 4,966.80 crore, approximately $597 million, into Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited.
According to ADIA, The investment, which is subject to customary approvals, will convert into a 0.59% equity stake in RRVL on a fully diluted basis.
The development follows the acquisition of Superdry’s Asia assets
Earlier this week, Reliance Brands Limited (RBL) signed a definitive agreement to forge a joint venture with UK-based Superdry PLC. The joint venture aimed at acquiring the intellectual property assets of Superdry for India, Sri Lanka, and Bangladesh, for £40 million (about Rs 402 crore).
What does ADIA do?
Established in 1976, the Abu Dhabi Investment Authority (ADIA) is a globally diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation.
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department, ADIA, said, “Reliance Retail 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.”
Isha Mukesh Ambani, Executive Director, Reliance Retail Ventures Limited, said, “We are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures Limited.”
“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. ADIA’s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy and execution capabilities,” Isha added.
QIA’s investment in Reliance Retail
In late August 2023, Qatar Investment Authority (QIA) said it would invest Rs 8,278 crore or approx $1 billion in Reliance Retail Ventures Limited (RRVL) for a minority equity stake of 0.99% on a fully diluted basis.
Reliance Retail operates India’s largest retail business with a network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle, and pharma.
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