PIF to invest ₹9,555 cr. for 2% in Reliance Retail Ventures

November 06, 2020 02:59 am | Updated 03:02 am IST - MUMBAI

A customer wearing protective mask pushes a trolley with grocery items past Reliance Jewels and Reliance Digital stores of Reliance Industries Ltd, in Mumbai, India, October 7, 2020. REUTERS/Niharika Kulkarni

A customer wearing protective mask pushes a trolley with grocery items past Reliance Jewels and Reliance Digital stores of Reliance Industries Ltd, in Mumbai, India, October 7, 2020. REUTERS/Niharika Kulkarni

The Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, has signed definitive documentation to acquire a 2.04% equity stake in Reliance Retail Ventures Ltd. (RRVL), the subsidiary of Reliance Industries Ltd. (RIL) for ₹9,555 crore.

The investment is in line with PIF’s strategy and mandate to invest ‘globally in innovative and transformative’ businesses that generate long-term commercial returns, RIL said in a statement.

This investment values RRVL at a pre-money equity value of ₹4.59 lakh crore (or approximately $62.4 billion). The investment in RRVL follows PIF’s earlier acquisition of a 2.32% stake in Jio Platforms.

Mukesh Ambani, CMD, RIL said, “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.”

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