A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) will invest Rs 4,966.80 crore in Reliance Retail Ventures Limited (RRVL), announced the Reliance Industries Limited on October 6. ADIA’s investment will translate into a 0.59% equity stake in RRVL on a fully-diluted basis.
In a statement, Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said that the investment aligns with the company’s strategy of supporting its portfolio companies that are transforming their respective end-markets.
The investment places RRVL’s pre-money equity value at Rs 8.381 lakh crore. The Indian company has an integrated omnichannel network, with over 18,500 stores and digital commerce platforms, across businesses of grocery, consumer electronics, fashion and lifestyle and pharmaceuticals.
The transaction is subject to customary approvals. Morgan Stanley served as the financial advisor to RRVL, while Cyril Amarchand Mangaldas and Davis Polk and Wardwell were its legal counsels for the deal.
RRVL aims to reform the Indian retail sector with its inclusive strategy by serving millions of customers, empowering MSMEs, and building collaborations with global and domestic companies, the company said in a press release. Its New Commerce business so far works with over 3 million small and unorganised merchants.