Qatar Investment Authority in talks for Reliance Retail minority stake

Reliance Industries Limited’s retail business Reliance Retail Ventures is in talks with the Qatar Investment Authority. The sovereign wealth fund of Qatar is considering acquiring a minority stake in the Indian business. 

The deal could see the Qatar Investment Authority invest $1 billion in Reliance Retail Ventures Limited to become a minority shareholder with a 1% stake in the business, Indian Retailer Bureau reported. Reliance Retail Ventures was recently valued at between $92 billion and $96 billion, Reuters reported, and the business is considering an initial public offering. 
 
A spokesperson for Reliance Retail told the Financial Times that the business evaluates various opportunities on an ongoing basis. Reliance Industries Limited owns 85% of Reliance Retail Ventures, which is run by billionaire Mukesh Ambani’s daughter Isha Ambani. 

The potential deal is still in the early stages and will require approval from the sovereign fund of Qatar. However, murmurings of the deal have been sufficient to have a positive impact on Reliance Industries Limited’s share prices which increased by 2%, although the recent sharp decline in share prices on July 19 has led analysts to term it a “rebound”, Indian Retailer Bureau reported.