Mumbai: Saudi Arabia’s Sovereign Fund — Public Investment Fund (PIF) is all set to buy a stake worth about Rs. 9,555 crore in the retail business of Mukesh Ambani-led Reliance Industries Ltd. (RIL) With total fundraising of ₹47,265 crores in the last two months, Asia’s richest man continues to bolster dominance of his consumer operations.
The PIF will pick up a 2.04 per cent stake in Reliance Retail Ventures Ltd. (RRVL), according to media statements issued by RIL and PIF on Thursday. The deal pegs the pre-investment equity valuation of Reliance Retail at Rs 4.58 lakh crore. “India’s retail sector is one of the largest in the world and accounts for over 10 per cent of its gross domestic product, which presents meaningful growth potential,” RIL said in the release.
According to Yasir Al-Rumayyan, governor of PIF, this “transaction demonstrates PIF’s commitment to investing and partnering for long term with innovative businesses around the world that lead and transform their sectors”.
This is the second investment by the Saudi Arabian sovereign wealth fund in an Ambani firm. It had previously picked up a 2.32 per cent stake in Jio Platforms, the digital and telecom arm of Reliance, for Rs. 11,367 crores.
PIF joins other global investors that have invested in Ambani’s retail venture. That includes Abu Dhabi Investment Authority (ADIA), Silver Lake, KKR & Co., General Atlantic, Mubadala Investment Co., GIC Pte Ltd., and TPG.
Reliance Retail has a total of 12,000 stores across consumer electronics, grocery and general merchandise, and fashion and lifestyle. It reported a consolidated turnover of nearly Rs 1.63 lakh crore and a net profit of Rs 5,448 crore for the year ended March.