Reliance Retail valued at Rs 8.4 lakh crores as ADIA buys 0.6% equity

Abu Dhabi Investment Authority’s wholly-owned subsidiary is set to make a significant investment of ₹4,966.80 crore into Reliance Retail Ventures Limited (RRVL), a prominent subsidiary of Reliance Industries Limited. With a valuation setting RRVL’s pre-money equity at an impressive ₹8.381 lakh crore, this places the retail titan among India‘s top four equity-valued companies. This fresh investment will grant ADIA an equity stake of 0.59% in Reliance Retail Ventures Limited.

Reliance Retail Ventures Limited Stance in the Indian Retail Sector

Reliance Retail, operating through its associates and subsidiaries, has positioned itself as India’s premier retail entity. It boasts a rapidly expanding and lucrative business model, catering to a whopping 267 million loyal customers. Supported by an integrated omnichannel network, RRVL manages over 18,500 physical and digital commerce outlets, ranging across multiple sectors such as groceries, electronics, fashion, and pharmaceuticals.

Revolutionizing Retail: Reliance Retail Ventures Limited Vision and Achievements

Determined to revolutionize the Indian retail domain, RRVL’s primary focus revolves around serving millions and bolstering the Micro, Small, and Medium Enterprises (MSMEs). The brand’s inclusive strategy collaborates with both global and domestic entities, aiming to deliver extensive societal benefits, protect jobs, and create employment opportunities. Their innovative New Commerce venture has successfully digitalized over 3 million local and informal merchants, equipping them with technological tools and a robust supply chain for improved customer value propositions.

Stakeholders’ Perspectives on the Investment

Isha Mukesh Ambani, Executive Director of Reliance Retail Ventures Limited, remarked, “We are pleased to further deepen our relationship with ADIA. Their decades of global value creation will benefit our vision, transforming the Indian retail sector. ADIA’s investment reflects their confidence in our business fundamentals, strategy, and execution capabilities.” Echoing her sentiments, Hamad Shahwan Aldhaheri, Executive Director of ADIA’s Private Equities Department, highlighted RRVL’s impressive market adaptability and growth, stating, “This investment aligns with our strategy of supporting companies transforming their end-markets. We are delighted to augment our exposure to India’s dynamic consumer sector.”

Further Proceedings and Advisory Roles

This transaction, however, awaits the standard approval procedures. Morgan Stanley played the pivotal role of financial advisor to Reliance Retail Ventures Limited for this deal, while legal advisories were handled by Cyril Amarchand Mangaldas and Davis Polk & Wardwell.