According to a report, ADIA is likely to invest $600 million in Ambani’s Reliance Retail.

According to a report by The Economic Times, Abu Dhabi Investment Authority (ADIA) is aiming to buy a bigger interest in Mukesh Ambani’s retail company Reliance Retail Ventures (RRVL).

ADIA, which currently has a 1.2% share in the retail behemoth, intends to increase its investment in Reliance Retail by more than $600 million. In October 2020, it paid Rs 5,512.50 crore for a 1.2% share in the retail firm.

Last week, RRVL issued 1.71 crore equity shares after successfully receiving the entire Rs 2,069.50 crore subscription payment from the international investment company KKR. As a result, KKR’s share allocation in RRVL increased from 1.17% to 1.42%.

The company’s value was estimated at over Rs 4.2 lakh crore when RRVL raised Rs 47,265 crore from foreign private equity investors in 2020, obtaining a 10.09% share and reputedly the highest fundraising in the industry at the time.

with the time, the business had received money from investors including Silver Lake, KKR, Mubadala, the Abu Dhabi Investment Authority, General Atlantic, GIC, TPG, and Saudi Arabia’s Public Investment Fund with a value of around $57 billion.

Reliance Industries is reportedly aiming to sell 8–10% of its interest in Reliance Retail in order to raise money for a planned initial public offering (IPO).

Through purchases and gaining franchise rights for well-known multinational companies in the Indian market, RRVL is pursuing an ambitious growth plan. Additionally, the business recently completed the purchase of the Indian operations of the famed German retail behemoth Metro Cash and Carry. The firm is also making considerable investments in the growth of its infrastructure.

Digital and innovative commerce generated 18% of the retail firm managed by Isha Ambani’s income in FY23, totaling Rs 2.60 lakh crore. More than 18,500 businesses and digital commerce platforms are managed by it, and they span a broad variety of industries, including groceries, consumer electronics, fashion and leisure, and medicines.

In Wednesday’s trading session, Reliance Industries is trading at Rs 2,356 a piece, down 0.62%. RIL shares began at Rs 2,343 per share, down from Tuesday’s finish of Rs 2,432.