Billionaire Mukesh Ambani-run Reliance Industries’ retail arm has raised Rs 9,555 crore from Public Investment Fund (PIF) of Saudi Arabia, taking the total fundraise in the last two months to Rs 47,265 crore. PIF will take a 2.04 percent stake in Reliance Retail Ventures Ltd (RRVL), the Indian firm said in a statement. The investment values RRVL, the retail arm of Reliance Industries, at a pre-money equity value of Rs 4.587 lakh crore.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, 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.”
Yasir Al-Rumayyan, Governor of PIF, said: “We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India’s most exciting sectors. This transaction demonstrates PIF’s commitment to investing and partnering for the long term with innovative businesses around the world that lead and transform their sectors.” “This investment further demonstrates PIF’s commitment to generating returns for the Saudi people and driving the economic diversification of Saudi Arabia,” he said.
India’s retail sector is one of the largest in the world and accounts for over 10 percent of its gross domestic product (GDP) which presents meaningful growth potential.