
Abu Dhabi Investment Authority (ADIA), one of the largest sovereign wealth funds in the world, is mulling to buy additional stake in Mukesh Ambani's retail empire. ADIA is seeking to invest $600 million in Reliance Retail, according to a report in The Economic Times.
Established in 1976, ADIA is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation. ADIA has invested in private equity since 1989 and has built a significant internal team of specialists with experience across asset products, geographies and sectors.
ADIA has already invested in Reliance Retail Ventures Limited (RRVL) previously, having bought a 1.2 per cent stake for Rs 5,512.50 crore ($751 million) in October 2020. "The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational New Commerce business model that it is rolling out," Mukesh Ambani, Chairman and Managing Director of Reliance Industries, had said then.
Last week, Reliance Retail Ventures Ltd, the retail arm of Reliance Industries, said it has received the full subscription amount of Rs 2,069.50 crore from the global investment firm KKR and has allotted 17.1 million equity shares.
Following the share allotment, KKR's shareholding in RRVL has increased to 1.42 per cent, from 1.17 per cent.
"Reliance Retail Ventures Ltd today received the subscription amount of Rs 2,069.50 crore from Alyssum Asia Holdings II Pte. Ltd. (KKR) and allotted 17,158,752 equity shares to KKR," Reliance Industries said in a regulatory filing.
RRVL, through its subsidiaries and affiliates, operates an integrated omni-channel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle and pharma consumption baskets and has partnered with over 3 million merchants through its new commerce initiative.
RRVL reported a consolidated turnover of Rs 2,60,364 crore ($ 31.7 billion) and net profit of Rs 9,181 crore ($ 1.1 billion) for the year ended March 31, 2023.
Also Read: Dunzo, backed by Google, Reliance, resorts to fresh layoffs to cut costs: Sources
Also Read: Mukesh Ambani's next big bet: Jio Financial Services