Reliance Industries on Thursday said Saudi Arabia's PIF or Public Investment Fund will buy a stake of 2.04 percent in Reliance Retail by investing $1.3 billion or Rs. 9555 crore. PIF is amongst the largest sovereign wealth funds globally.
The deal after the earlier seven back to back investments by global investors, values the company's retail arm at a pre-money equity value of Rs 4.587 lakh crore (around $62.4 billion). Earlier the fund invested into the company's digital platform Jio Platforms and bought 2.32 percent stale.
In RRVL, the conglomerate Reliance Industries has until now divested a stake of 10.09 percent and raked in a sum of Rs. 47,265 crore. And the list of investors into Reliance Retail unit includes Singapore's sovereign wealth fund GIC, global alternative asset firm TPG Abu Dhabi Investment Authority, Mubadala Investment Co, General Atlantic, KKR and Silver Lake
For PIF, this investment would mark the fund's entry into the country's ever-expanding retail market.
On the deal, Mukesh Ambani said, "We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. 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."