Qatar Investment Authority To Invest Rs 8278 Cr In Reliance Retail Ventures

Reliance Industries Limited (RIL) in an exchange filing on Wednesday has announced that the Qatar Investment Authority (QIA), through a wholly-owned subsidiary, will invest Rs 8,278 crore in its retail arm, Reliance Retail Ventures Limited (RRVL).

On a fully diluted basis, QIA's investment will result in a 0.99% minority equity position in RRVL. RRVL had raised Rs 47,265 crore from various global investors in 2020, at a pre-money equity valuation of Rs 4.21 lakh crore.

Reliance Retail Limited, a subsidiary of RRVL, is the only Indian retailer in the global Top 100 and amongst the fastest growing retailers globally as per Deloitte's Global Powers of Retailing 2023. RRVL reported a consolidated turnover of Rs 260,364 crore ($ 31.7 billion) and net profit of Rs 9,181 crore ($1.1 billion) for the year ended March 31, 2023.

Ms Isha Mukesh Ambani, Director, Reliance Retail Ventures Limited, said, "We are delighted to welcome QIA as an investor in Reliance Retail Ventures Limited. We look forward to benefitting from QIA's global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world class institution, driving transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards Indian economy and Reliance's retail business model, strategy and execution capabilities."

Mansoor Ebrahim Al-Mahmoud, CEO, QIA, said, "QIA is committed to supporting innovative companies with high-growth potential in India's fast growing retail market. We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India."

RRVL's vision is to galvanize the Indian retail sector through an inclusive strategy serving millions of customers, empowering micro, small and medium enterprises (MSMEs) and working closely with global and domestic companies as a preferred partner, to deliver immense benefits to Indian society, while protecting and generating employment for millions of Indians. RRVL, through its New Commerce business, has digitized more than 3 million small and unorganised merchants. This will enable these merchants to use technology tools and an efficient supply chain infrastructure to deliver a superior value proposition to their own customers.

Morgan Stanley acted as financial advisor to Reliance Retail Ventures Limited and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels. Goldman Sachs, acting as financial advisor to RIL, advised on the process and transaction structuring.

AZB and Cleary Gottlieb acted as legal counsel to QIA.

About - Qatar Investment Authority

Qatar Investment Authority ("QIA") is the sovereign wealth fund of the State of Qatar. QIA was founded in 2005 to invest and manage the state reserve funds. QIA is among the largest and most active sovereign wealth funds globally. QIA invests across a wide range of asset classes and regions as well as in partnership with leading institutions around the world to build a global and diversified investment portfolio that can deliver sustainable returns and contribute to the prosperity of the State of Qatar.