Mumbai (Maharashtra) [India], October 3 (ANI): Reliance Industries Limited and Reliance Retail Ventures Limited (RRVL) announced that GIC, a leading global investment fund, will invest Rs 5,512.5 crores into RRVL, a subsidiary of Reliance Industries.
The investment by GIC values RRVL at a pre-money equity value of Rs 4.285 lakh crore and it will translate into a 1.22 percent equity stake in RRVL on a fully diluted basis.
Commenting on the investment by GIC, Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said, "It gives me great pleasure to welcome GIC to the Reliance Retail family. I am delighted that GIC, with its track record of close to four decades of successful long-term value investing across the world, is partnering with Reliance Retail in its mission to transform the Indian retail landscape."
"GIC's global network and track record of long-term partnerships will be invaluable to the transformation story of Indian Retail. This investment is a strong endorsement of our strategy and India's potential," he added.
Lim Chow Kiat, Chief Executive Officer, GIC, further commenting on the investment, said, "GIC is pleased to partner with Reliance through this new investment, which will enable the company to position Reliance Retail for the strong secular growth in India's retail market. We believe Reliance Retail will continue to use its extensive supply chain and store networks, as well as strong logistics and data infrastructure, to add value to its customers and shareholders."
RRVL is a subsidiary of Reliance Industries Limited and holding company of all the retail companies under the RIL Group. RRVL reported a consolidated turnover of Rs 162,936 crore (USD 21.7 billion) and net profit of Rs 5,448 crore (USD 726.4 million) for the year ended March 31, 2020.
Reliance Retail topped the list of '50 fastest-growing retailers globally between FY2013-2018' in the Deloitte's Global Powers of Retailing 2020 index. It secured the 56th spot this year against the 94th rank the previous year and is the only Indian company to be featured in this list. (ANI)