Qatar fund to buy 1% stake in Reliance Retail for Rs 8,278 crore

New Delhi, August 23

Reliance Industries on Wednesday announced that Qatar Investment Authority (QIA), through a wholly owned subsidiary, will invest Rs 8,278 crore into its retail arm Reliance Retail Ventures Limited (RRVL).

“This investment values RRVL at a pre-money equity value of Rs 8.278 lakh crore,” Reliance Industries said in a regulatory filing.

RRVL, through its subsidiaries and associates, operates India’s largest, retail business with an integrated omni-channel network of over 18,500 stores.

“QIA’s investment will translate into a minority equity stake of 0.99% in RRVL on a fully-diluted basis,” it added.

RRVL director Isha Mukesh Ambani said, “We are delighted to welcome QIA as an investor in Reliance Retail Ventures Ltd. We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world class institution, driving transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards Indian economy and Reliance’s retail business model, strategy and execution capabilities.” — PTI

Deal dynamics

• This investment values Reliance Retail Ventures Ltd (RRVL) at a pre-money equity value of Rs 8.278 lakh crore
• RRVL, through its subsidiaries and associates, operates India’s largest, retail business with an integrated omni-channel network of over 18,500 stores
• Qatar Investment Authority’s investment will translate into a minority equity stake of 0.99% in RRVL on a fully-diluted basis