THE INVESTMENT IS FURTHER ENDORSEMENT OF RELIANCE RETAIL’S INCLUSIVE AND TRANSFORMATIONAL NEW COMMERCE BUSINESS MODEL
Mumbai, October 6, 2020:
Reliance Industries Limited (“Reliance Industries”) and Reliance Retail Ventures Limited (“RRVL”) announced today thata wholly owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) will invest ₹5,512.50crore into RRVL, a subsidiary of Reliance Industries. This investment values RRVL at a pre-money equity value of ₹4.285lakh crore. ADIA’s investment will translate into a 1.20% equity stake in RRVL on a fully diluted basis.With this investment, RRVL has raised ₹ 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest,fastest growing and most profitable retail business serving close to 640 million footfalls across its ~12,000 stores nationwide. Reliance Retail’s vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers by empowering millions of farmers and micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians. Reliance Retail, through its New Commerce strategy, has started a transformational digitalization of small and unorganised merchants and is committed to expanding the network to over 20 million of these merchants. This will enable the merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.
Mukesh Ambani, Chairman and Managing Directorof Reliance Industries,said, “We are delightedwith ADIA’s current investment andcontinued support and hope to benefit from its strongtrack record of over four decades of value creationglobally. The investment by ADIA is a further endorsement of Reliance Retail’s performance and potentialand the inclusive and transformational New Commerce business model that it is rolling out.”
Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said, “Reliance Retail has rapidly established itself as one of the leading retail businesses in India and, by leveragingboth its physical and digital supply chains, is strongly positioned for further growth.This investment is consistent with our strategy of investing in market leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement.”
The transaction is subject to regulatory and other customary approvals.Morgan Stanleyacted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldasand Davis Polk & Wardwellactedas legal counsels
