Saudi Arabia’s PIF picks up 2.04% stake in Reliance Retail for Rs 9,555 crore

With this investment, a record eighth by marquee global investors, Reliance Retail Ventures Limited (RRVL) is now valued at a pre-money equity value of Rs 4.587 lakh crore (around $62.4 billion)

FP Staff November 05, 2020 17:02:46 IST
Saudi Arabia’s PIF picks up 2.04% stake in Reliance Retail for Rs 9,555 crore

Representational image. CNBC-TV18

Saudi Arabia’s Public Investment Fund (PIF) will invest Rs 9,555 crore, or roughly $1.3 billion, in Reliance Industries' retail unit in exchange for a 2.04 percent stake in the company, reports said.

With this investment, a record eighth by marquee global investors, Reliance Retail Ventures Limited (RRVL) is now valued at a pre-money equity value of Rs 4.587 lakh crore (around $62.4 billion).

The investment in RRVL follows PIF’s earlier acquisition of a 2.32 percent stake in Jio Platforms, the digital services subsidiary of RIL.

PIF is one of the world’s largest sovereign wealth funds, and this investment will strengthen its presence in India's dynamic economy and the promising retail market segment.

RIL has so far sold 10.09 percent in RRVL, India’s largest retailer, for a combined Rs 47,265 crore.

A clutch of investors such as Singapore's sovereign wealth fund GIC, global alternative asset firm TPG Abu Dhabi Investment Authority, Mubadala Investment Co, General Atlantic, KKR, and Silver Lake (twice) have purchased stakes in the company.

Mukesh Ambani, chairman and managing director of Reliance Industries, said, "We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants."

What is PIF?

PIF, founded in 1971, is the sovereign wealth fund of Saudi Arabia. It was founded for the purpose of investing funds on behalf of the Government of Saudi Arabia. PIF is developing a portfolio of high quality domestic and international investments diversified across sectors, geographies, and asset classes.

PIF operates through six investment pools comprising local and global investments in line with its objectives to actively invest over the long term to maximise sustainable returns, be the investment partner of choice for global opportunities, and enable the economic development and diversification of the Saudi economy.

PIF aims to be a global investment powerhouse and the worl​d’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.

DISCLAIMER: Reliance Industries is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

G20 summit: COVID-19 pandemic biggest challenge world is facing since World War II, says Narendra Modi
India

G20 summit: COVID-19 pandemic biggest challenge world is facing since World War II, says Narendra Modi

Modi also said that "Work from Anywhere" is a new normal in the post-COVID world and suggested the creation of a virtual G20 secretariat

Israel adds Saudi to its list of COVID-19 'green countries' after PM's reported visit to kingdom
World

Israel adds Saudi to its list of COVID-19 'green countries' after PM's reported visit to kingdom

On Tuesday, the health ministry confirmed that Saudi Arabia had been added to the safe list a day earlier, but dismissed any link to Netanyahu's reported visit to city of Neom on Sunday

Riyadh denies reports of meeting between Benjamin Netanyahu and MBS
World

Riyadh denies reports of meeting between Benjamin Netanyahu and MBS

Israeli public broadcaster Kan and other media said Netanyahu and Mossad spy agency chief Yosef Meir Cohen had met the de facto Saudi ruler, together with US secretary of state Mike Pompeo, in the Red Sea city of Neom on Sunday