Mubadala Investment Co. will invest Rs 6,247.5 crore in Reliance Retail Ventures Ltd., a subsidiary of billionaire Mukesh Ambani-controlled Reliance Industries Ltd., as the retailer continues to raise funds to increase its dominance in India.
The Abu Dhabi-based sovereign investor will get 1.40% equity stake for its investment. The announcement comes a day after Silver Lake Partners said it will invest Rs 1,875 crore in India's largest retailer.
In all, Reliance Retail has so far raised Rs 24,847.5 crore by selling 5.6% stake to private equity and sovereign funds. That includes General Atlantic, which will pick up 0.84% stake for Rs 3,675 crore; and KKR & Co., which will invest Rs 5,500 crore for 1.28% holding.
This investment by Mubadala pegs the pre-investment equity valuation of Reliance Retail at Rs 4.28 lakh crore.
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.
Mubadala had also invested $1.2 billion in Jio Platforms earlier this year.
Reliance Retail has a total of 11,784 stores across consumer electronics, grocery and general merchandise and fashion & lifestyle. It reported a consolidated turnover of Rs 1,62,936 crore and net profit of Rs 5,448 crore for the year ended March 31, 2020.
The acquisition of Future Group's retail and logistics business for Rs 27,513 crore will add 1,736 Big Bazaar and other stores covering close to 28.3 million square feet of retail area across various grocery and fashion segments.
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