Saudi Arabia’s PIF invests Rs 9,555 crore for 2.04% stake in RIL’s

 

Reliance Retail stake sale: Saudi Arabia’s PIF invests Rs 9,555 crore for 2.04% stake in RIL’s arm

Reliance Retail stake sale: Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia, that had earlier invested Rs 11,367 crore in Jio Platforms for a 2.32 per cent stake in June this year.

Oil-to-telecom behemoth Reliance Industries (RIL) on Thursday announced that Saudi Arabia’s Public Investment Fund (PIF) will invest Rs 9,555 crore (approximately $1.3 billion) in its retail arm Reliance Retail (RRVL) for a 2.04 per cent equity stake. The latest investment values RRVL at a pre-money equity value of Rs 4.587 lakh crore (approximately $62.4 billion), the company said in a statement.

This is PIF’s second investment in a RIL subsidiary. It will “further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment,” the statement said. The sovereign wealth fund of Saudi Arabia had earlier invested Rs 11,367 crore in Jio Platforms for a 2.32 per cent stake in June this year.

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 developing 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 per cent of its gross domestic product (GDP) which presents meaningful growth potential, the statement said.

“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,” RIL’s Chairman and Managing Director Mukesh Ambani said in the company statement.