Qatar sovereign fund invests $1bn in India's Reliance

RELIANCE INDUSTRIES on Wednesday (23) announced that Qatar Investment Authority (QIA), through a wholly-owned subsidiary, will invest $1 billion into its retail arm Reliance Retail Ventures Limited.

"This investment values Reliance Retail at a pre-money equity value of $100bn," Reliance Industries said in a regulatory filing.

Reliance Retail, through its subsidiaries and associates, operates India's largest, retail business with an integrated omni-channel network of over 18,500 stores.

"QIA's investment will translate into a minority equity stake of 0.99 per cent in Reliance Retail on a fully-diluted basis," it added.

"We are delighted to welcome QIA as an investor in Reliance Retail Ventures Ltd. We look forward to benefitting from QIA's global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world class institution, driving transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards Indian economy and Reliance's retail business model, strategy and execution capabilities," said Isha Mukesh Ambani, director, Reliance Retail.

Mansoor Ebrahim Al-Mahmoud, CEO, QIA, said, "QIA is committed to supporting innovative companies with high-growth potential in India's fast growing retail market. We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India."

Reliance Retail, which is the leading retailer of the country, is aggressively expanding its business by acquiring companies and getting franchise rights of leading international brands for the Indian market.

Its board had on July 4, 2023, approved a proposal in which shares held by such shareholders shall stand cancelled and extinguished as per the capital reduction plan.

In 2020, RRVL had raised $6.4bn from global private equity funds for a 10.09 per cent stake. This was the largest fundraising exercise in the sector at that time.

The company had raised funds from Silver Lake, KKR, Mubadala, Abu Dhabi Investment Authority, GIC, TPG, General Atlantic and Saudi Arabia's Public Investment Fund at a valuation of around $57bn at that time.

Recently, Reliance Retail launched British sandwich and coffee chain Pret A Manger in India, positioning it to compete with Starbucks, which is operated by the Tata Group.

(With inputs from PTI)