Abu Dhabi Investment Authority will invest Rs 5,512.5 crore in Reliance Industries Ltd.'s retail unit, taking the total funds raised to Rs 37,710 crore in less than four weeks.
The sovereign wealth fund will get 1.2% stake for its investment in Reliance Retail Ventures Ltd,, according to an exchange filing on Tuesday. The deal pegs the pre-investment equity valuation of Reliance Retail at Rs 4.28 lakh crore.
ADIA joins a clutch of global investors that have ploughed money into billionaire Mukesh Ambani's retail unit. Others include Silver Lake, KKR & Co., General Atlantic, Mubadala Investment Co., GIC Pte Ltd. and TPG.
Ambani is replicating funding blitz for the retail unit after selling stakes in Jio Platforms as investors, including Facebook Inc. and Google, bet on his efforts to build a technology giant that offers data, content and commerce. ADIA was among the investors that invested in Jio Platforms as well.
Also Read: Tata Taking on Ambani Could Be India's Alibaba-Tencent
Reliance Retail has a total of 11,784 stores across consumer electronics, grocery and general merchandise and fashion and lifestyle. It reported a consolidated turnover of nearly Rs 1.63 lakh crore ($21.7 billion) and net profit of Rs 5,448 crore ($726.4 million) for the year ended March. Acquisition of Future Group's retail and logistics business for Rs 27,513 crore will add 1,736 Big Bazaar and other stores.
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