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Saudi PIF invests $1.3bn in Reliance Retail Ventures

Saudi Arabia's Public Investment Fund (PIF) will invest ₹9,555 crore (approximately $1.3 billion) in a subsidiary of India's Reliance Industries Limited (RIL).

PIF has signed definitive documentation to acquire a 2.04% equity stake in Reliance Retail Ventures Limited, said a statement from RIL and RRVL. This investment values RRVL at a pre-money equity value of ₹4.587 lakh crore (approximately $62.4 billion).

This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment said the statement.

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

The transaction is in line with PIF’s strategy as a leading global investor with a proven track record of investing in innovative and transformative companies globally and develop strong partnerships with leading groups in their respective markets. India’s retail sector is one of the largest in the world and accounts for over 10% of its gross domestic product (GDP) which presents meaningful growth potential.

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.

Yasir Al-Rumayyan, Governor of PIF said We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India’s most exciting sectors. This transaction demonstrates PIF’s commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors.

This investment further demonstrates PIF’s commitment to generating returns for the Saudi people and driving the economic diversification of Saudi Arabia.

Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fast-growing retail business serving close to 640 million footfalls at its ~12,000 stores across the country.

Reliance Retail’s vision is to galvanise the Indian retail sector through its new commerce strategy, serving millions of customers by empowering millions of micro, small and medium enterprises (MSMEs), the statement said.
  • #Saudi
  • #Investment
  • #Fund
  • #India
  • #Reliance
  • #Industries
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