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NEW DELHI: Reliance Industries on Tuesday announced that a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.50 crore in its retail arm, Reliance Retail Ventures.
ADIA’s investment will translate into a 1.20 per cent equity stake in Reliance Retail on a fully diluted basis. This investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore.
With this investment, the company has raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.
“We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally. The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational New Commerce business model that it is rolling out,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries.
Reliance Retail operates India's largest retail business spread across nearly 12,000 stores nationwide.
“Reliance Retail has rapidly established itself as one of the leading retail businesses in India and, by leveraging both its physical and digital supply chains, is strongly positioned for further growth. This investment is consistent with our strategy of investing in market leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement,” said Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA.
The transaction is subject to regulatory and other customary approvals. Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsel.
Shares of Reliance Industries closed down 0.05 per cent in Mumbai at Rs 2,210.15.
ADIA’s investment will translate into a 1.20 per cent equity stake in Reliance Retail on a fully diluted basis. This investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore.
With this investment, the company has raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.
“We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally. The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational New Commerce business model that it is rolling out,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries.
Reliance Retail operates India's largest retail business spread across nearly 12,000 stores nationwide.
“Reliance Retail has rapidly established itself as one of the leading retail businesses in India and, by leveraging both its physical and digital supply chains, is strongly positioned for further growth. This investment is consistent with our strategy of investing in market leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement,” said Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA.
The transaction is subject to regulatory and other customary approvals. Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsel.
Shares of Reliance Industries closed down 0.05 per cent in Mumbai at Rs 2,210.15.
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