Middle East SWF’s in talks to buy stake in Reliance Retail

Mumbai: Middle East sovereign wealth funds, including the Abu Dhabi Investment Authority (ADIA), Mudabala Investment and Saudi Arabia’s Public Investment Fund (PIF), are in talks to buy stakes in Mukesh Ambani-led Reliance Industries’ arm Reliance Retail Ventures Ltd (RRVL).

Mukesh Ambani’s offline and online retail business has now become the latest cynosure for global investors and sovereign wealth funds weeks after Jio Platforms raised Rs. 1.52 trillion from overseas.

While ADIA is in discussions about an investment of $750 million at a valuation of roughly $57 billion, the PIF could funnel as much as $1.5 billion into the entity. Other overseas investors seeking a stake in India’s booming retail spectrum include L Chatterton, KKR, Carlyle Group and Soft Bank Group.

RRVL seeks to offload up to a 15 per cent stake to private equity players and strategic investors to raise Rs. 800 billion, while reserving the largest allocation of 40 per cent for Amazon.