Saudi fund to invest $1.3 billion in RIL's retail arm; shares rise 2%

Reliance Industries (RIL) share price added 2 percent in early trade on November 6 after the company said Saudi Arabia’s Public Investment Fund (PIF) is going to invest in the retail unit.

Public Investment Fund (PIF) will invest Rs 9,555 crore, or roughly $1.3 billion, in company's retail unit Reliance Retail Ventures Limited (RRVL) in exchange for a 2.04 percent, RIL said in its release.

This investment — a record eighth investment by marquee global investors— values Reliance Retail Ventures Limited (RRVL) at a pre-money equity value of Rs 4.587 lakh crore (around $62.4 billion).

This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment.

The investment in RRVL follows PIF’s earlier acquisition of a 2.32 percent stake in Jio Platforms, the digital services subsidiary of RIL.

RIL has so far sold 10.09 percent in RRVL, India’s largest retailer, for a combined Rs 47,265 crore.

A clutch of investors such as Singapore's sovereign wealth fund GIC, global alternative asset firm TPG Abu Dhabi Investment Authority, Mubadala Investment Co, General Atlantic, KKR and Silver Lake (twice) have purchased stakes in the company.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, "We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants."

At 09:17 hrs, Reliance Industries was quoting at Rs 1,996.15, up Rs 41.15, or 2.10 percent on the BSE.