Reliance Retail - Saudi PIF deal: PIF to invest $1.3 billion in Reliance Retail for 2.04% stake
Reliance Industries is on a spree once again. But this time around, it’s not the Jio platforms that are attracting investments from investors around the globe. Instead, this time Reliance Retail has taken the spotlight.
Reliance Industries Ltd. on Thursday said that the Public Investment Fund (PIF) will invest ₹ 9,555 crores for an equity stake of 2.04% in Reliance Retail Ventures Limited. This investment values RRVL at a pre-money equity value of ₹ 4.587 lakh crore.
This is the second investment by the Saudi Arabian sovereign wealth fund in an Ambani firm which totals the fund raised in the last two months to Rs 47,265 crore. It had previously picked up a 2.32% stake in Jio Platforms, the digital and telecom arm of Reliance, for Rs 11,367 crore.
The Public Investment Fund is one of the largest and most impactful sovereign wealth funds in the world, driving the economic transformation of Saudi Arabia for the benefit of its people while helping shape the future global economy. PIF is building a world-class portfolio through investments in attractive, long-term opportunities across diverse industries and asset classes internationally while unlocking new sectors at home.
Mukesh Ambani said, “This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment.” He further added, “the transaction is in line with PIF's strategy as a leading global investor with a proven track record of investing in innovative and transformative companies globally and develop strong partnerships with leading groups in their respective markets."
The Governor of Saudi PIF - Yasir Al-Rumayyan said, "We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India's most exciting sectors. This transaction demonstrates PIF's commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors."
Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fast-growing retail business serving close to 640 million footfalls at its 12,000 stores across the country.