RIL shares in focus as QIA to invest Rs 8,278 crore in arm Reliance Retail

Shares of Reliance Industries Ltd (RIL) will be in focus on Thursday morning after the oil-to-telecom major said Qatar Investment Authority (QIA) would invest Rs 8,278 crore into its subsidiary Reliance Retail Ventures Limited (RRVL) at at a pre-money equity value of Rs 8.278 lakh crore.

The investment, through QIA's wholly-owned subsidiary, will translate into a minority equity stake of 0.99 per cent in RRVL on a fully-diluted basis, RIL said in a BSE filing. The previous fund-raise round by RRVL in 2020 from various global investors of an aggregate amount of Rs 47,265 crore was done at a pre-money equity value of Rs 4.21 lakh crore.

Isha Mukesh Ambani, Director, RRVL said her company was looking forward to benefitting from QIA’s global experience and strong track record of value creation, RIL further develops 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, Ambani said.

Mansoor Ebrahim Al-Mahmoud, CEO, QIA, said, QIA was committed to supporting innovative companies with high-growth potential in India’s fast growing retail market.

"We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India.”

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