Qatar Investment Authority will invest Rs 8,278 crore in Reliance Retail Ventures Limited

Reliance Industries Limited’s subsidiary Reliance Retail Ventures Limited will receive an investment of Rs 8,278 crore from the Qatar Investment Authority. The investment will be made through a wholly-owned subsidiary and values Reliance Retail Ventures Limited at a pre-money equity value of Rs 8.278 lakh crore. 

“We are delighted to welcome QIA as an investor in Reliance Retail Ventures Limited,” said Reliance Retail Ventures Limited’s director Isha Mukesh Ambani in a press release on August 23. “We look forward to benefitting from QIA’s global experience and strong track record of value creation as we further develop Reliance Retail Ventures Limited into a world class institution, driving transformation of the Indian retail sector. The investment by QIA is a strong endorsement of a positive outlook towards Indian economy and Reliance’s retail business model, strategy and execution capabilities.”
 
The Qatar Investment Authority’s investment will translate into a 0.99% minority equity stake in Reliance Retail Ventures Limited on a fully diluted basis. Reliance Retail Ventures Limited worked with Morgan Stanley as its financial advisor for the investment and the Qatar Investment Authority worked with AZB and Cleary Gottlieb for its legal counsel. 

“QIA is committed to supporting innovative companies with high-growth potential in India’s fast growing retail market,” said Qatar Investment Authority’s CEO Mansoor Ebrahim Al-Mahmoud. “We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India.”