Strategy of investing in consumer-driven growth
The Abu Dhabi Investment Authority (ADIA) is investing Rs.5,512.50 crore in the Indian market through Reliance Retail Ventures Limited (RRVL) or Reliance Industries which has emerged as favourites among international investors amidst global economic uncertainties induced by COVID-19.
AIDA Executive Director of the Private Equities Department Hamad Shahwan Aldhaheri “This investment is consistent with our strategy of investing in market’s leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement.”
Reliance Retail, he noted, has rapidly established itself as one of the leading retail businesses in India and, by leveraging both its physical and digital supply chains, is strongly positioned for further growth.
Announcing the latest investment, Reliance Chairman and Managing Director Mukesh Ambani said, “The investment by ADIA is a further endorsement of Reliance Retail’s performance and potential and the inclusive and transformational New Commerce business model that it is rolling out.”
“We are delighted with ADIA’s current investment and continued support and hope to benefit from its strong track record of over four decades of value creation globally,” he said.
The investment values RRVL at a pre-money equity value of Rs.4.285 lakh crore. ADIA’s investment will translate into a 1.20% equity stake in RRVL on a fully diluted basis.
With this investment, RRVL has raised Rs.37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.
Reliance Retail Limited, a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its ~12,000 stores nationwide. #investment #technology #emirates #banking /fiinews.com
