Reliance Industries Jumps As Retail Arm Secures Another Investment

Shares of Billionaire Mukesh Ambani-promoted Reliance Industries rose as much as 4.50 per cent to hit an intraday high of Rs 2,309.40 on the BSE a day after its retail arm - Reliance Retail Ventures secured an investment of Rs 5,512.50 crore from Abu Dhabi Investment Authority. Reliance Retail Ventures will sell 1.20 per cent stake in the company to Abu Dhabi Investment Authority, valuing the company at Rs 4.29 lakh crore. The transaction, latest in a series of investments in Reliance Retail from global investors, is likely to bolster Reliance Industries' retail presence in the domestic market.

With this investment, Reliance Industries said its retail unit has raised a total of Rs 37,710 crore from leading global investors, including Silver Lake and KKR, within four weeks.

Last week, Abu Dhabi-based state fund Mubadala invested Rs 6,247.5 crore in Reliance Retail Ventures for 1.40 per cent stake in the company.

Reliance Industries has attracted a series of investments this year, which, along with a rights issue worth Rs 53,000 crore, have helped the group become net debt-free much ahead of its goal of March 2021.

The group has been aggressively expanding its footprint in the domestic retail sector as it looks to attract potential investors over the next few quarters.

Last month, Reliance Industries forged a Rs 24,713-crore deal to acquire rival Future Group's retail business. That deal followed its launch of JioMart, an online grocery service, In May, in a move aimed at rivalling Amazon's local unit and Walmart's Flipkart in the huge market.

As of 2:39 pm, Reliance Industries traded 3.61 per cent higher at Rs 2,290, outperforming the Sensex and giving it a boost of 234 points.