Saudi Arabia’s Public Investment Fund to Buy 2.04% in Reliance Retail for Rs 9,555 Crore

Reliance Industries (RIL) on Thursday announced that the Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), will invest Rs 9,555 crore, or $1.3 billion, to buy 2.04% stake in its retail arm. This investment values Reliance Retail Ventures Limited (RRVL) at a pre-money equity value of Rs 4.587 lakh crore.

The investment in RRVL follows PIF’s earlier acquisition of a 2.32% stake in Jio Platforms, the digital services subsidiary of RIL. It will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment. RIL has so far sold 10.09 percent in RRVL for a combined Rs 47,265 crore.

Singapore’s sovereign wealth fund GIC, global alternative asset firm TPG Abu Dhabi Investment Authority, Mubadala Investment Co, General Atlantic, KKR and Silver Lake (twice) have purchased stakes in the company.

“I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants,” Reliance Industries chairman Mukesh Ambani said.

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.

Founded in 1971, PIF is the sovereign wealth fund of Saudi Arabia. It is developing a portfolio of high quality domestic and international investments diversified across sectors, geographies and asset classes.

PIF operates through six investment pools comprising local and global investments in line with its objectives to actively invest over the long term to maximize sustainable returns, be the investment partner of choice for global opportunities, and enable the economic development and diversification of the Saudi economy.