PIF will pick 2.04 per cent stake in RRVL on a fully diluted basis in return of the investment
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November 5, 2020 2 min read
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Reliance Industries Limited (RIL) announced on Wednesday that The Public Investment Fund (PIF) will invest INR 9,555 crore (around USD1.3 billion) in Reliance Retail Ventures (RRVL), the retail arm of RIL.
The sovereign wealth fund of Saudi Arabia will pick 2.04 per cent stake in RRVL on a fully diluted basis.
This fresh capital infusion will value Reliance’s retail subsidiary at a pre-money equity value of INR 4.587 lakh crore (around USD 62.4 billion).
This is PIF’s second investment in a RIL subsidiary after INR 11,367 crore (USD 1.5 billion) investment in the company’s digital unit Jio Platforms in June this year for 2.32 per cent stake.
“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,” said Mukesh Ambani, Chairman and MD, RIL in a press note released by the company.
“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 the latest investment, Reliance retail has raised a total of INR 47,265 crore from eight global investors in return of combined 10.09 per cent stake in the company.
The latest 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 developing strong partnerships with leading groups in their respective markets, as per the company’s statement.
“We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India’s most exciting sectors. This transaction demonstrates PIF’s commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors,” said Yasir Al-Rumayyan, Governor, PIF.