For a 0.99% equity investment, QIA would invest Rs 8,278 crore in Reliance Retail

Reliance Retail Ventures Limited (RRVL) stated on Wednesday that the Qatar Investment Authority (QIA) would invest Rs. 8,278 crore in RRVL, a subsidiary of Reliance Industries Limited, via a wholly-owned subsidiary.

The investment values RRVL at Rs 8.278 lakh crore in pre-money equity.

Using an integrated omni-channel network of more than 18,500 stores and digital commerce platforms across the grocery, consumer electronics, fashion & lifestyle, and pharmaceutical consumption baskets, RRVL, through its subsidiaries and associates, operates India’s largest, fastest growing, and most profitable retail business.

On a fully diluted basis, QIA’s investment will result in a 0.99% minority ownership position in RRVL.

The last round of funding by RRVL in 2020 included contributions from several international investors totaling Rs 47,265 crore at a pre-money equity valuation of Rs 4.21 lakh crore.

We are pleased to welcome QIA as an investor in Reliance Retail Ventures Limited, said Isha Mukesh Ambani, Director of Reliance Retail Ventures Limited. As we continue to convert Reliance Retail Ventures Limited into a top-tier organization and lead the transformation of the Indian retail industry, we look forward to using QIA’s extensive worldwide expertise and successful track record of value generation. The investment made by QIA is a resounding affirmation of the Indian economy’s prospects as well as Reliance’s retail business model, strategy, and execution skills.

“QIA is committed to supporting innovative businesses with high growth potential in India’s rapidly expanding retail market,” stated Mansoor Ebrahim Al-Mahmoud, CEO of QIA. We are excited for Reliance Retail Ventures Limited to join our expanding and varied portfolio of investments in India with its strong vision and outstanding development trajectory.

Through an inclusive strategy that serves millions of customers, empowers micro, small, and medium-sized enterprises (MSMEs), and collaborates closely with international and domestic businesses as a preferred partner, RRVL’s vision is to energize the Indian retail sector and bring about significant benefits for Indian society while safeguarding and creating jobs for millions of Indians.

Through its New Commerce division, RRVL has digitalized over three million small, unorganized retailers.

This will make it possible for these retailers to offer their own consumers a better value proposition by using digital tools and a productive supply chain architecture.

Reliance Retail Ventures Limited received financial advice from Morgan Stanley and legal guidance from Cyril Amarchand Mangaldas and Davis Polk & Wardwell. RIL received process and transaction structure advice from Goldman Sachs, which was serving as its financial adviser.

QIA had legal representation from AZB and Cleary Gottlieb.