ADIA Commits INR 4,966.8 Crore Mega Investment in Reliance Retail Ventures

A subsidiary of the Abu Dhabi Investment Authority (ADIA) plans to invest INR 4,966.80 crore in Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited. This move values RRVL at a substantial pre-investment equity valuation of INR 8.381 lakh crore, catapulting it into the league of the nation’s top four companies by equity value, according to a press release from the company. ADIA’s investment in RRVL will translate into an equity stake of 0.59 percent in RRVL on a fully-diluted basis.

Isha Mukesh Ambani, Executive Director of RRVL, expressed enthusiasm about strengthening their relationship with ADIA, highlighting ADIA’s extensive experience and value creation expertise. This continued support from ADIA is expected to be instrumental in realizing RRVL’s vision and driving transformation within the Indian retail sector. Ambani also emphasized ADIA’s belief in the Indian economy and RRVL’s business fundamentals, strategy, and execution capabilities.

Hamad Shahwan Aldhaheri, Executive Director of ADIA’s Private Equities Department, praised Reliance Retail’s impressive growth and adaptability in a rapidly evolving market. He noted that this investment aligns with ADIA’s strategy of supporting portfolio companies that are leading transformative changes in their respective markets.

RRVL, along with its subsidiaries and associates, caters to a vast customer base of 267 million loyal patrons. Their integrated omnichannel network boasts over 18,500 stores and robust digital commerce platforms. It’s important to note that the transaction is subject to customary approvals. Morgan Stanley provided financial advisory services to RRVL, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell served as legal counsels.