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This Article is From Oct 01, 2020

Reliance Retail To Sell 1.4% Stake To Mubadala For Rs 6,248 Crore

The deal marks the second significant investment by Mubadala in a Reliance Industries subsidiary, following its purchase of a $1.2-billion stake in Jio Platforms earlier this year.

Reliance Retail To Sell 1.4% Stake To Mubadala For Rs 6,248 Crore

Abu Dhabi-based state fund Mubadala will invest Rs 6,247.5 crore in billionaire Mukesh Ambani-led Reliance Industries' retail arm, Reliance Retail Ventures, the conglomerate said on Thursday. Mubadala Investment Company's investment will translated into a 1.40 per cent stake in Reliance Retail Ventures Limited (RRVL), giving the Reliance group company a pre-money equity value of Rs 4.285 lakh crore. The Mubadala deal is the latest in a series of investments in Reliance Industries group companies, and is likely to bolster oil-to-telecom conglomerate's retail presence in the domestic market.

"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... through the power of technology," said Mukesh Ambani, chairman and managing director, Reliance Industries. "Mubadala's investment and guidance will be an invaluable support in this journey," he said.

The deal marks the second significant investment by Mubadala in a Reliance Industries subsidiary, following its purchase of a $1.2-billion stake in Jio Platforms earlier this year.

Reliance Retail operates India's fastest growing and most profitable retail business serving close to 640 million footfalls across its 12,000 stores nationwide.

Reliance Industries shares ended 0.39 per cent lower at Rs 2,225, ahead of the announcement of the Mubadala deal.

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