The Mukesh Ambani-led Reliance India Limited has announced that Saudi Arabia’s sovereign Public Investment Fund (PIF) is going to invest Rs 9,555 crore ($1.3 billion) to pick 2.04 per cent stake in Reliance Retail Ventures Ltd (RRVL), reports Economic Times.
With this latest announcement on Thursday (5 November), the Saudi company has become the ninth international funds to plough capital into RRVL. The cumulative foreign investment in RRVL, the holding arm of Reliance Retail, has jumped up to Rs 47,265 crore accounting for 10.5 per cent stake in the retailer.
Notably, the decision to pick up 2.04 per cent stake will be the largest investment so far in RRVL, trumping US base fund Silver Lake’s September investment of Rs 7,500 crore Reliance Retail for a 1.75 per cent stake.
This investment values RRVL at a pre-money equity value of Rs 4.587 lakh crore (approximately $62.4 billion). It 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 per cent stake in Jio Platforms, the digital services subsidiary of Reliance Industries.
The transaction is in line with PIF's strategy as a leading global investor with a proven track record of investing in innovative and transformative companies globally and develop strong partnerships with leading groups in their respective markets. India's retail sector is one of the largest in the world and accounts for over 10 per cent of its gross domestic product (GDP) which presents meaningful growth potential.
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.”
With IANS Inputs
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