ADIA Invests Rs 4,966.80 Crore in Reliance Retail

Reliance Retail Ventures Limited (RRVL) has disclosed that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will infuse Rs 4,966.80 crore into RRVL, which is a subsidiary of Reliance Industries Limited. This move has elevated RRVL’s pre-money equity valuation to Rs 8.381 lakh crore, positioning it as one of India’s top four companies by equity value. According to a statement by Reliance Retail, ADIA’s investment will result in a 0.59 percent equity stake in RRVL on a fully-diluted basis.

RRVL, together with its subsidiaries and associates, is responsible for India’s largest and most rapidly expanding retail business, serving an impressive customer base of 267 million loyal patrons. The company takes pride in its integrated omni channel network, encompassing more than 18,500 stores and digital commerce platforms spanning grocery, consumer electronics, fashion and lifestyle, and pharmaceuticals.

RRVL’s overarching vision is to revolutionize the Indian retail sector through an inclusive strategy that caters to millions of customers, empowers micro, small, and medium enterprises (MSMEs), and fosters collaborations with both global and domestic enterprises. This approach aims to deliver substantial benefits to Indian society while concurrently creating employment opportunities for millions of Indians.
RRVL’s New Commerce business has already digitally transformed over 3 million small and unorganized merchants, enabling them to leverage technology tools and an efficient supply chain infrastructure to provide enhanced value to their customers, according to a release.

Isha Mukesh Ambani, Executive Director of Reliance Retail Ventures Limited, expressed her satisfaction, saying, “We are delighted to deepen our relationship with ADIA, thanks to their continued support as an investor in Reliance Retail Ventures Limited. Their extensive experience spanning decades in global value creation will further enhance our ability to implement our vision and drive the transformation of the Indian retail sector. ADIA’s investment in RRVL underscores their belief in the Indian economy and our sound business fundamentals, strategy, and execution capabilities.”

Hamad Shahwan Aldhaheri, who serves as the Executive Director of ADIA’s Private Equities Department, commented that Reliance Retail has displayed robust growth and flexibility in a market that is experiencing an unprecedented rate of change. He says that this investment is in line with our strategy of backing the portfolio companies that are reshaping their specific industries. He expressed his delightment saying, “We are delighted to collaborate with the Reliance Group and expand our presence in India’s vibrant and rapidly expanding consumer sector.”

Reliance Industries Limited (RIL), the overarching entity behind RRVL, stands as India’s largest private sector conglomerate, with a wide range of interests encompassing hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, renewable energy, retail, and digital services. RIL consistently ranks among the world’s largest and most influential companies, underscoring its significant global presence.

This transaction is subject to customary approvals. Morgan Stanley acted as the financial advisor to Reliance Retail Ventures Limited, while Cyril Amarchand Mangaldas and Davis Polk and Wardwell served as legal counsels.