ADIA

Reliance Retail Ventures (RRVL) on Friday said that a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 4,966.80 crore into RRVL, a subsidiary of Reliance Industries. 

This investment values RRVL at a pre-money equity value of Rs 8.381 lakh crore, making it among the country’s top four companies by equity value. This investment by ADIA will translate into an equity stake of 0.59 per cent in RRVL on a fully-diluted basis.

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.”

RRVL, through its subsidiaries and associates, operates India’s largest, fastest growing, and most profitable retail business serving 267 million loyalty customers with an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion & lifestyle, and pharma consumption baskets.

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. We are pleased to partner with the Reliance Group, and increase our exposure to India’s dynamic and fast-growing consumer sector.”

RRVL’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers, empowering micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians. RRVL, through its New Commerce business, has digitized more than 3 million small and unorganised merchants. This will enable these merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.

The transaction is subject to customary approvals.

Morgan Stanley acted as financial advisor to Reliance Retail Ventures Limited and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.