ADIA to invest Rs. 5,512.50 crore in Reliance Retail Ventures in ADIA- Reliance Retail Deal

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Parth Dubey
I am Parth Dubey, currently an undergraduate. I have been working as a content writer for the past 6 months and have worked in various fields with many people and firms. I firmly believe that writing is not just about money making or attracting people, it's more about knowledge and information, along with feelings.

The Abu Dhabi Investment Authority (ADIA) is a sovereign wealth fund, a globally-diversified investment institute, owned by the Emirate of Abu Dhabi was purely founded with an aim of investing funds on the behalf of Abu Dhabi’s government. The Abu Dhabi Investment Authority(ADIA)’s wholly-owned subsidiary would invest a sum of Rs 5,512.5 Crores in Reliance Retail, as reported by the polymer update editorial team member.

Reliance Industries reports revenue of Rs 151,209 crore in Q4 FY 20 -  Exchange4media
Image Source: Exchange4Media

More About ADIA Decision :

Retail of Reliance has raised from leading global investors making it a total of Rs 37,710. These global investors include Silver Lake, GIC, KKRGeneral Atlantic, TPG, Mubadala, and now, ADIA is also included in this fancy list. All of these investments have been made within recent four weeks.

The investment made by ADIA in Reliance Retail Ventures Limited(RRLV) is actually in a deal where a 1.2 percent stake and values of the company would be of ADIA after this deal. This would be at a pre-money equity value of Rs. 4.285 lakh crore.

Billionaire Mukesh Ambani, chairman and managing director of reliance industries, recently stated, “We are extremely happy with ADIA’s investment and continuous support currently, and hope to benefit from its strong track record of over four decades of creation globally.” The ADIA’s investment is a further endorsement of the performance and potential of Reliance Retail and the inclusive rolling out a business model.

ADIA-Reliance Retail Deal: Abu Dhabi's sovereign fund to invest Rs 5,512.5  crore in RIL's retail
Image Source: MoneyControl

Established in 1976, ADIA has invested since 1989 in private equity and has built an impressive internal team full of experienced specialists, experience across asset products, sectors, and geographies.

The executive director of the Private Equities Department at ADIA, Hamad Shahwan Aldhaheri, said, “Reliance Retail has at a very fast rate, established itself as the leading retail businesses in India. This investment is consistent with our strategy of investing in market-leading businesses in Asia linked to the region’s consumption-driven growth and rapid technological advancement.”

On October 3, Singapore’s sovereign wealth fund GIC also stated it will invest Rs 5,512.5 crore to buy 1.22 percent share in RRVL. On October 1, Abu Dhabi-based sovereign wealth fund Mubadala Investment Co said it invest Rs 6,247.5 crore to buy a 1.4 percent stake in its retail arm, global private equity firm General Atlantic had picked up a 0.84 percent stake in the company for Rs 3,675 crore. US PE investor Silver Lake made a second investment of Rs 1,875 crore, taking its total fund infusion in RRVL to Rs 9,375 crore for a 2.13 percent stake.

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