UAE-based Mubadala to invest Rs 6,247.5 cr in RRVL for 1.4% stake; RIL arm receives about Rs 25K cr funds since Sept 2020

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The investment values Reliance Retail at a premoney equity value of Rs 4.285 lakh crore

Reliance Industries announced that Abu Dhabi-based sovereign investor Mubadala Investment Company (Mubadala) will invest Rs 6,247.5 crore in Reliance Retail Ventures Limited (RRVL), a subsidiary of Mukesh Ambani-led firm.

The investment values Reliance Retail at a premoney equity value of Rs 4.285 lakh crore. Mubadala’s investment will translate into a 1.40 percent equity stake in RRVL on a fully diluted basis.

With the latest investment, Reliance Retail received a total Rs 24,847.5 crore since September from investors including US-based KKR & Co, private equity giant General Atlantic, technology investment firm Silver Lake and sovereign wealth fund Mubadala.

This marks the second significant investment by Mubadala in a Reliance Industries subsidiary after the $1.2 billion investment in Jio Platforms announced earlier this year.

Mubadala’s investment is the third such deal for RRVL in the past two days. On Wednesday, RIL announced that co-investors of Silver Lake and General Atlantic will invest Rs 1,875 crore and Rs 3,675 crore respectively in RRVL.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “I am happy to welcome Mubadala as a valued investor in Reliance Retail Ventures. We value the partnership with a knowledge-rich organization like Mubadala and acknowledge their confidence in our mission to strengthen the core of India’s retail sector – the millions of small retailers, merchants and shopkeepers – through the power of technology. Mubadala’s investment and guidance will be an invaluable support in this journey.”

Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: "We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures. Their vision is the inclusive transformation of India’s consumer economy through the power of digitization, creating opportunities and market access for millions of small businesses across the country, and we are committed to supporting the company’s continuing development."

RIL shares closed 0.39 percent lower at Rs 2,225.05 on Friday ahead of the announcement.

Image credit: File photo

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