After a lull of close to a month, Reliance Retail has managed to bag another big investment from a big-ticket player. This time it's from the Saudi Arabia-based the Public Investment Fund (PIF)
According to a press statement from Reliance Retail, PIF will invest Rs 9,555 crore ($1.3 billion) for an equity stake of 2.04% in Reliance Retail
The investment values Reliance Retail at a pre-money equity value of Rs 4.587 lakh crore (approximately $62.4 billion).
PIF had earlier chipped in with Rs 11,367 crore ($1.5 billion) and acquired 2.32% stake in Jio Platforms, the digital services subsidiary of Reliance Industries.
The transaction is in line with PIF’s strategy as a leading global investor in leading groups in their respective markets. India’s retail sector is one of the largest in the world and accounts for over 10% of its gross domestic product (GDP) which presents meaningful growth potential.
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Reliance Retail has so far raised Rs 47,265 crore
Including this deal, Reliance Retail has got Rs 47,265 crore in investments in two months. Aside from the current transaction, Reliance Retail had raised Rs 37,710 crore from leading global investors including two tranches from Silver Lake (1 and 2), KKR, General Atlantic, Mubadala, GIC, TPG and ADIA. The market rumour is Reliance Retail will offload only around 10% to 15% stake in the company.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: "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."
Yasir Al-Rumayyan, Governor of PIF, said: "We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India’s most exciting sectors. This transaction demonstrates PIF’s commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors.”
Reliance Retail operates India's largest retail business, having close to 640 million footfalls at its 12,000 stores across the country.
November 05, 2020 at 01:18PM from TechRadar - All the latest technology news https://ift.tt/3k2om9n
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