QIA has announced that it will invest a 1 billion dollar stake in Reliance Retail Ventures Limited (“RRVL”).
Qatar’s sovereign wealth fund has announced plans to invest a $1 billion stake in India’s Reliance Retail Ventures Limited (RRVL), Forbes reported.
The investment in the retail arm of India’s Reliance Industries is a 0.99% stake of a pre-money equity value of nearly 100 billion, said RRVL in a press release obtained by Doha News.
Qatar Investment Authority is expected to have a minority equity stake on a fully diluted basis.
Ranked as the 10th-largest sovereign wealth fund globally according to SWF Institute data, QIA is perceived to be strengthening its presence in the subcontinent, reflecting an ongoing commitment to invest in one of Asia’s most dynamic markets.
“QIA is committed to supporting innovative companies with high growing potential in India’s fast-growing retail market,” said Mansoor Ebrahim Al-Mahmoud, CEO of Qatar Investment Authority.
“We are looking forward to Reliance Retail Ventures Limited, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of its investment in India.”
Reliance Retail is India’s largest retailer and has been partnering with several global brands to launch and expand its presence in India.
Through its subsidiaries and associated, it is also the fastest growing and most profitable retailer. RRVL has a channel network of over 18,500 stores and digital platforms providing services in grocery, consumer electronics, fashion and lifestyle, and pharma consumption baskets.
Reliance Retail, a unit of Reliance Retail Ventures, was recently valued at $92 billion to $96 billion by two global consultants, a move that could signal an eventual initial public offering of the company.
In 2020, Reliance Retail Ventures raised about $57 billion from various global investors.
“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,” said Isha Ambani, Director of the RRVL.