Key Points:
– Mubadala to buy 1.4% stakes of Reliance Retail.
– The stake costs ₹6,247.5 cr.
– Mubadala has invested second time in the Reliance subsidiary.
– Reliance Industry’s Chairman and Managing Director, Mukesh Ambani was happy to welcome the investors.
– RIL gave out the Press Release on October 1.
Reliance Industries Limited (RIL) gave out a press release of Abu Dhabi-based sovereign wealth fund Mubadala that picked up 1.4 % stake for ₹6,247.5 crores in Reliance Retail Ventures (RRVL). It is a subsidiary of Reliance Industries Limited.
₹ 4.285 lakh crore is the pre-money equity value of the investment at Reliance Retail by Mubadala.
“Mubadala’s investment will translate into a 1.40% equity stake in RRVL on a fully diluted basis,”
RIL stated in its regulatory filing.
5 Key things about the Reliance – Mubadala deal:
1) Mubadala has invested for the second time in Reliace Industries subsidiary after the $1.2 billion investment in Jio Platforms declare earlier this year.
2) After Abu Dhabi Investment Authority, Mubadala is the second-biggest state investor. Mubadala has 50+ Businesses and investments in more than 50 countries.
3) 1.4 percent equity stake is the total investment by Mubadala’s in Reliance Retail Ventures on a fully diluted basis.
4) RRVL has seen a lot of Investor Interest in Reliance Retail in the past few weeks. India’s biggest brick-and-mortar retail business has collected Rs 5,550 crore from US buyout firm KKR & Co and Rs 3,675 crore from private equity firm General Atlantic apart from the major Silver Lake investment in the subsidiary.
5) Advanced Manufacturing, Semiconductors, Metals and Mining, Pharmaceutical and Medical Technology, Renewable Energy and Utilities plus the Management of Distinct Financial Holdings is all included in Mubadala’s portfolio.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said in the official Press Release:
“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 – the millions of small retailers, merchants and shopkeepers – through the power of technology. Mubadala’s investment and guidance will be an invaluable support in this journey.”
Check the Official Press Release at:
https://www.ril.com/getattachment/ef3088cd-ab2f-4624-ac22-af33f217dc83/Mubadala-to-invest-%E2%82%B9-6,247-5-crore-(AED-3-1-billio.aspx
Reliance has since September raised ₹24,847.5 crore by selling 5.65% in its retail arm.
