RIL offers 2.04% stake in retail arm to Saudi fund
Shares of Reliance Industries (RIL) added 2% in early trade on November 6 after the company said Saudi Arabia’s Public Investment Fund (PIF) is going to invest in the retail unit.
Public Investment Fund (PIF) will invest Rs 9,555 crore, or roughly $1.3 billion, in company’s retail unit Reliance Retail Ventures Limited (RRVL) in exchange for a 2.04%.
This investment — a record eighth investment by marquee global investors— values Reliance Retail Ventures Limited (RRVL) at a pre-money equity value of Rs 4.587 lakh crore (around $62.4 billion).
This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment.
The investment in RRVL follows PIF’s earlier acquisition of a 2.32% stake in Jio Platforms, the digital services subsidiary of RIL.
RIL has so far sold 10.09% in RRVL, India’s largest retailer, for a combined Rs 47,265 crore.
A clutch of investors such as Singapore’s sovereign wealth fund GIC, global alternative asset firm TPG Abu Dhabi Investment Authority, Mubadala Investment Co, General Atlantic, KKR and Silver Lake (twice) have purchased stakes in the company.
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