Mumbai (Maharashtra) [India], October 1 (ANI): Reliance Industries Limited (RIL) and Reliance Retail Ventures Limited (RRVL) on Thursday announced that Mubadala Investment Company, the Abu Dhabi-based sovereign investor, will invest Rs 6,247.5 crore (AED 3.1 billion) into RRVL.
The investment values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore. Mubadala's investment will translate into a 1.40 per cent equity stake in RRVL on a fully diluted basis.
This marks the second significant investment by Mubadala in a RIL subsidiary after the USD 1.2 billion investment in Jio Platforms announced earlier this year.
A press release said that Reliance Retail Limited, a subsidiary of RRVL, operates India's fastest-growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide.
"Reliance Retail, through its New Commerce strategy, has started a transformational digitalisation of small and unorganized merchants and is committed to expanding the network numbering over 20 million businesses, giving them access to technology tools and efficient supply chain infrastructure that deliver superior value to their customers," the release said.
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 an invaluable support in this journey."
Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: "We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures. Their vision is the inclusive transformation of India's consumer economy through the power of digitization, creating opportunities and market access for millions of small businesses across the country, and we are committed to supporting the company's continuing development."
The transaction is subject to regulatory and other customary approvals. (ANI)