Saudi Arabia sovereign wealth fund Public Investment Fund (PIF) will invest Rs 9,555 crore (approximately $1.3 billion) into Reliance Retail for an equity stake of 2.04 per cent. This investment would value RRVL at a pre-money equity value of Rs 4.587 lakh crore (approximately $62.4 billion), stated Reliance in a statement on Thursday. PIF's investment comes after it invested Rs 11,367 crore (approximately $1.5 billion) in Reliance Jio for an equity stake of 2.32 per cent.
PIF's investment is in line with its strategy as a leading global investor with a track record of investing in innovative and transformative companies globally, stated Reliance Retail. PIF joins a bunch of investors such as Mubadala, KKR, Silver Lake, GIC, TPG and Abu Dhabi Investment Authority to invest in Reliance Retail.
Reliance Industries Chairman and MD Mukesh Ambani said, "We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India's retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants."
Yasir Al-Rumayyan, Governor of PIF, said that this transaction demonstrates PIF's commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors. "This investment further demonstrates PIF's commitment to generating returns for the Saudi people and driving the economic diversification of Saudi Arabia," he said.
Reliance Retail has 12,000 stores across the country. RRVL reported a consolidated turnover of Rs 162,936 crore ($ 21.7 billion) and net profit of Rs 5,448 crore ($ 726.4 million) for the year ended March 31, 2020.
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