Reliance Industries Ltd. said that the Public Investment Fund of Saudi Arabia will invest Rs. 9,555 crore for an equity stake of 2.04 percent in Reliance Retail Ventures Limited valuing the company at Rs. 4.59 lakh crore. “This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment,” the Mukesh Ambani-led company said in a statement. “The transaction is in line with PIF’s strategy as a leading global investor with a proven track record of investing in innovative and transformative companies globally and develop strong partnerships with leading groups in their respective markets,” Reliance Industries said.
With PIF’s latest investment Reliance Retail Ventures has raised Rs. 47,265 crore from leading investors like Silver Lake, Abu Dhabi Investment Authority, and KKR among others. PIF had earlier acquired a 2.32 percent stake in Jio Platforms, the digital services arm of Reliance Industries. PIF is one of the largest sovereign wealth funds in the world and works alongside global strategic partners and renowned investment managers. It acts as the Kingdom of Saudi Arabia’s primary investment arm aiming toward generating long-term value for the Kingdom of Saudi Arabia in line with Vision 2030. Commenting on the deal, Mukesh Ambani, chairman and managing director of Reliance Industries, said, “I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants.” Reliance Retail Limited a subsidiary of RRVL, operates the country’s largest, fastest-growing, and most profitable retail business. It is serving close to 640 million footfalls across 12,000 stores in India. Reliance Industries shares ended 2.18 percent higher at Rs. 1,955, outperforming the Sensex which closed nearly 2 percent higher.