Mukesh Ambani’s Reliance Retail receives flood of investments; now ADIA lines up to invest Rs 5,512 crore

Billionaire Mukesh Ambani’s Reliance Retail is set to receive Rs 5,512.5 crore as an investment from the Abu Dhabi Investment Authority (ADIA). ADIA will secure 1.2 per cent stake after the investment, said the official statement. With this investment, Reliance Retail 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, the statement added. Reliance Retail operates India’s largest retail business serving close to 64 crore footfalls across 12,000 stores nationwide.

“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,” Mukesh Ambani said. The investment by ADIA is a further endorsement of Reliance Retail’s performance, potential, and the inclusive and transformational new commerce business model that it is rolling out, he added.

ADIA has invested in Reliance Retail considering its growth prospects in the future. Reliance Retail 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, said Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA. 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, Hamad Shahwan Aldhaheri added. Morgan Stanley has acted as a financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.

Meanwhile, Reliance Retail recently announced that General Atlantic recently will invest Rs 3,675 crore into the firm for a 0.84 per cent equity stake on a fully diluted basis. Silver Lake and its co-investors have also brought in an additional Rs 1,875 crore investment to buy more stake in Mukesh Ambani’s Reliance Retail, taking their total investment into RIL’s retail unit to Rs 9,375 crore, securing 2.13 per cent stake.