Reliance Retail Ventures Limited (RRVL) has announced that a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will inject Rs 4,966.80 crore into RRVL, a subsidiary of Reliance Industries Limited. This investment has propelled RRVL's pre-money equity valuation to Rs 8.381 lakh crore, positioning it as one of India's top four companies by equity value. As per Reliance Retail's statement, ADIA's investment will translate to a 0.59 percent equity stake in RRVL on a fully-diluted basis.
RRVL, along with its subsidiaries and associates, presides over India's largest and rapidly growing retail business, catering to an impressive customer base of 267 million loyal patrons. The company prides itself on its integrated omni-channel network, spanning over 18,500 stores and digital commerce platforms that encompass grocery, consumer electronics, fashion and lifestyle, and pharmaceuticals.
RRVL's overarching vision is to transform the Indian retail sector through an inclusive strategy aimed at serving millions of customers, empowering micro, small, and medium enterprises (MSMEs), and fostering collaborations with both global and domestic enterprises. This approach seeks to deliver significant benefits to Indian society while simultaneously creating employment opportunities for millions of Indians.
RRVL's New Commerce segment has already digitally transformed more than 3 million small and unorganized merchants, equipping them with technology tools and an efficient supply chain infrastructure to enhance the value they offer to their customers, as per an official statement.
Isha Mukesh Ambani, the Executive Director of Reliance Retail Ventures Limited, expressed her satisfaction, stating, 'We are thrilled to strengthen our partnership with ADIA, thanks to their ongoing support as investors in Reliance Retail Ventures Limited. Their extensive experience spanning decades in global value creation will further bolster our ability to realize our vision and drive the revolution in the Indian retail sector. ADIA's investment in RRVL underscores their confidence in the Indian economy and our strong business fundamentals, strategy, and execution capabilities.'
Hamad Shahwan Aldhaheri, Executive Director of ADIA's Private Equities Department, noted that Reliance Retail has demonstrated impressive growth and adaptability in a rapidly changing market. He stated that this investment aligns with their strategy of supporting portfolio companies that are reshaping their respective industries. He expressed his enthusiasm, saying, 'We are excited to partner with the Reliance Group and expand our presence in India's dynamic and rapidly expanding consumer sector.
Reliance Industries Limited (RIL), the parent company of RRVL, is India's foremost private sector conglomerate, with diverse business interests spanning hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, renewable energy, retail, and digital services. RIL consistently holds its position as one of the world's largest and most influential companies, highlighting its substantial global footprint.
This transaction is contingent upon standard approvals. Morgan Stanley provided financial advisory services to Reliance Retail Ventures Limited, with legal counsel provided by Cyril Amarchand Mangaldas and Davis Polk and Wardwell.
