Qatar Investment Authority Invests In Reliance Retail Ventures Ltd 8.278 Billion Rupees
Qatar Investment Authority Invests In Reliance Retail Ventures Ltd: Reliance Retail Ventures Ltd (RRVL), the retail division of Reliance Industries Ltd, would receive a roughly 1% investment from Qatar Investment Authority (QIA) for Rs 8,278 crore.
This is roughly two times the value that RRVL commanded three years ago when parent company RIL sold a group of foreign investors 10,09% of the business.
Reliance Retail Ventures Ltd (RRVL), the retail division of Reliance Industries Ltd, would receive a roughly 1% investment from Qatar Investment Authority (QIA) for Rs 8,278 crore.
This is roughly two times the value that RRVL commanded three years ago when parent company RIL sold a group of foreign investors 10,09% of the business.
The pre-money equity value of the transaction was Rs. 4.21 lakh crore. Abu Dhabi Investment Authority, KKR, GIC, Silver Lake, TPG, Mubadala, General Atlantic, and the Public Investment Fund of Saudi Arabia were among the investors.
The organized retail division of Reliance is represented by RRVL. Revenues of Rs 260,364 crore were reported in 2022–23, while Rs 69,948 crore were reported in the first quarter that concluded on June 30, 2023. During these times, Reliance Retail’s combined net income was Rs 9,181 crore and Rs 2,448 crore, respectively.
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Due to the investment by QIA, it is now unclear when RIL would float RRVL and Jio Platforms, which stand in for its digital services division. Mukesh Ambani, the chairman of Reliance, might reveal his future intentions at the company’s annual general meeting on Monday.
We are happy to welcome QIA as an RRVL investor. As we continue to build RRVL into a top-tier institution and lead the transformation of the Indian retail industry, we look forward to using QIA’s extensive international experience and successful track record of value generation.
According to Isha Ambani, director of RRVL, the investment by QIA is a powerful endorsement of an optimistic stance toward the Indian economy and Reliance’s retail business model, strategy, and execution capabilities.
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notwithstanding being made after market hours, the RIL stock ended the day on the BSE with modest gains of 0.16 percent at Rs 2,523.15 notwithstanding the announcement.
This information was released on the same day that Reliance Retail Ventures announced plans to raise Rs 3,048 crore through a development investment trust (InvIT) of its warehouse and logistics assets.
The Intelligent Supply Chain Infrastructure Trust, or InvIT, is sponsored by RRVL, and Axis Trustee Services serves as trustee.
According to an RRVL filing to the Securities and Exchange Board of India, the money will be raised through a private placement.
The InvIT and RRVL have a share purchase agreement (SPA) in place for the InvIT to acquire 100% of the equity in the RRVL warehouse SPV, granting it control of the logistics infrastructure assets.
According to the petition, the facilities will include 64 warehouses dispersed across 34 towns nationwide.
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A special purpose vehicle (SPV) will receive a loan for the purchase of warehousing and logistics assets totaling Rs 2,928 crore out of the total amount of Rs 3,048 crore; the remaining amount will be used to buy the SPV’s equity.
The demerged financial services division of RIL, Jio Financial Services Ltd., saw its shares continue to perform poorly on the stock exchanges as they once again dropped 5% to hit the lower circuit limit for the third straight trading day on both the BSE and NSE.
On the BSE and NSE, the stock fell to Rs 227.25 and Rs 224.65, respectively. The company was valued at Rs. 1,44,378.38 crore on the market.
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