Mubadala to invest Rs 6,247.5cr in Reliance Retail Ventures
Reliance Industries and Reliance Retail Ventures announced today that Mubadala Investment Company (Mubadala), the Abu Dhabi-based sovereign investor, will invest Rs6,247.5cr (AED 3.1 billion) into Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited (RIL).
The investment values Reliance Retail at a pre-money equity value of Rs4.285 lakh crore. Mubadala’s investment will translate into a 1.40% equity stake in RRVL on a fully diluted basis.
This marks the second significant investment by Mubadala in a Reliance Industries subsidiary after the US $1.2 billion investment in Jio Platforms announced earlier this year.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “I am happy to welcome Mubadala as a valued investor in Reliance Retail Ventures. We value the partnership with a knowledge-rich organization like Mubadala and acknowledge their confidence in our mission to strengthen the core of India’s retail sector – the millions of small retailers, merchants and shopkeepers – through the power of technology. Mubadala’s investment and guidance will be invaluable support in this journey.”
The transaction is subject to regulatory and other customary approvals. Morgan Stanley acted as financial advisor to Reliance Retail and Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.