Reliance Retail Ventures Limited (RRVL), the retail arm of Indian conglomerate Reliance Group, said Qatar Investment Authority (QIA), through a wholly-owned subsidiary, will invest about $1 billion (₹82.78 billion) in the company.
Qatar Investment Authority’s investment will translate into a minority equity stake of 0.99 percent in RRVL on a fully diluted basis.
This investment values RRVL, a subsidiary of Reliance Industries Limited, at a pre-money equity value of about $100 billion, the company said in a media statement.
RRVL, through its subsidiaries and associates, operates a pan India retail omni-channel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.
Qatar Investment Authority joins Reliance Retail
Isha Mukesh Ambani, Director, RRVL, said the QIA investment is a strong endorsement of a positive outlook towards the Indian economy and Reliance’s retail business model, strategy and execution capabilities.
“We look forward to benefitting 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, driving transformation of the Indian retail sector,” she said.
Mansoor Ebrahim Al-Mahmoud, CEO, Qatar Investment Authority, said the sovereign fund is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market.
“We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India,” he said.
Morgan Stanley acted as financial advisor and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels to RRVL for the deal.
AZB and Cleary Gottlieb acted as legal counsel to Qatar Investment Authority.
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