Qatar’s sovereign wealth fund, the Qatar Investment Authority has invested Rs 8,278 crore (around $1 billion) for a 0.99% stake in oil-to-telecom conglomerate Reliance Industries’ retail arm.
The deal values Reliance Retail Ventures at a little over $100 billion, Reliance said in an exchange disclosure on Wednesday.
To be sure, the current pre-money valuation after QIA’s investment is a tad higher than the $92-96 billion derived by company-appointed valuers EY and BDO, nearly a month ago.
“QIA is committed to supporting companies with high-growth potential in India’s growing retail market,” said Mansoor Ebrahim Al-Mahmoud, chief executive officer, QIA.
“We are looking forward to Reliance Retail Ventures Limited, with its vision and growth trajectory, joining our portfolio of investments in India.”
The deal comes about three years after the Public Investment Fund (PIF) of Saudi Arabia said it will invest Rs 9,555 crore ($1.3 billion) in Reliance Retail Ventures Ltd. At the time, it had a pre-money equity value of Rs 4.58 trillion (around $62.4 billion).
“The investment by QIA is an endorsement of a positive outlook towards Indian economy and Reliance’s retail business model, strategy and execution capabilities,” said Isha Ambani, director, Reliance Retail Ventures.
The pre-money valuation makes Reliance Retail Ventures the conglomerate’s second company to be valued at over $100 billion and the biggest retailer in the country.
It operates an omnichannel network of over 18,500 stores and digital commerce platforms across grocery, consumer electronics, fashion and lifestyle and pharma consumption. It includes brands with offline presence in the country such as Reliance Smart and Reliance Trends to online-first initiative of the group including e-commerce firm JioMart and fashion retailer Ajio.
