The investment, which has been routed via a wholly-owned subsidiary of ADIA, values RRVL at a pre-money equity value of nearly Rs 8.4 lakh crore, making it among the top four companies by value in the country. This investment by ADIA will translate into an equity stake of around 0.6% in RRVL on a fully-diluted basis, the company said in a statement on Friday.
The latest investment comes less than a month after KKR pumped Rs 2,070 crore into the company. Since August alone, Qatar Investment Authority (QIA), KKR and now ADIA have cumulatively infused over Rs 15,000 crore into Mukesh Ambani-led Reliance’s retail unit. ADIA had earlier in October 2020 invested Rs 5,513 crore in RRVL for around 1.2% stake.
The growing investor appetite comes at a time when the retailer is aggressively expanding its footprint across segments, ranging from fashion to beauty. Reliance’s strategy, analysts said, is to play across a gamut of categories – starting from mass to luxury. In the fashion space, for instance, while the company has partnered with a spate of global luxury brands and is gearing up to launch a luxury mall in Mumbai, it has also launched a youth-focused fashion retail format Yousta targeted at value customers.
RRVL, through its subsidiaries, serves 267 million customers and runs an omni-channel network, spanning more than 18,500 stores and digital commerce platforms. RRVL reported a consolidated turnover of Rs 2,60,364 crore and net profit of Rs 9,181 crore for the year ended March 31, 2023. Saudi Arabia’s Public Investment Fund, Abu Dhabi’s Mubadala, Singapore’s GIC, US’s Silver Lake, General Atlantic and TPG are other investors that own stakes in Reliance Retail, which plans to go public.