Reliance Retail in talks with Gulf, Singapore funds for $1.5-bn investment: Report

Mukesh Ambani-controlled Reliance Retail is reportedly in talks with existing investors including the sovereign wealth funds of Singapore, Abu Dhabi and Saudi Arabia for another round of investments of around $1.5 billion, Reuters reported on Wednesday.

The talks with investors are part of an internal target to raise $3.5 billion that the company wants to close by the end of September, Reuters reported. 

Singapore's GIC, the Abu Dhabi Investment Authority (ADIA), and Saudi Arabia's Public Investment Fund (PIF) are looking to invest at least $500 million each in Reliance Retail at a valuation of $100 billion, the report said.

GIC, PIF, and ADIA are among the world's biggest investment funds and together they own a 4.4% stake in Reliance Retail.

In 2020, Reliance sold a 10.09 per cent stake in its retail unit at Rs 4.68 lakh crore ($56.4 billion). At that time, GIC and ADIA invested $664 million each, while PIF pumped in $1.15 billion, based on current exchange rates.
 

The news comes two days after private equity giant KKR announced that it will invest an additional Rs 2,069.50 crore in the Reliance Industries Ltd (RIL) arm. Its latest investment values RRVL at Rs 8.36 lakh crore.

“We are pleased to receive continued support from KKR as an investor in RRVL. We highly value our deepening partnership with KKR, and their latest investment in RRVL after their previous investment further reinforces their strong belief in RRVL’s vision and capabilities,” Isha Ambani, director, of RRVL, said while commenting on the latest investment from KKR.

“We look forward to continued engagement with KKR and to benefit from their global platform, industry knowledge, and operational expertise, in our journey towards driving transformation of the Indian retail sector,’’ she said.

Last month, Qatar Investment Authority (QIA) said it would invest Rs 8,278 crore in the company. QIA’s investment would translate into a minority equity stake of 0.99 per cent in RRVL on a fully diluted basis. 

This investment valued RRVL at a pre-money equity value of Rs 8.278 lakh crore, RRVL said in a statement.

RRVL, through its subsidiaries and associates, operates India’s largest, retail business having nearly 27 crore loyalty customers with an integrated omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle, and pharma consumption baskets.

Reliance Retail has partnerships with brands such as Jimmy Choo, Marks & Spencer, and Pret A Manger. It also competes with Amazon and Walmart’s Flipkart.

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