Reliance Retail, the retail arm of Reliance Industries, is in discussions with its existing investors for combined new investments of around $1.5 billion, Reuters reported on Wednesday. The report citing three sources with direct knowledge of the plan said that the Mukesh Ambani-led firm is looking for more investment from existing investors like sovereign wealth funds of Singapore, Abu Dhabi, and Saudi Arabia.
The report comes after the company announced the investment of Global investment firm KKR in Reliance Retail Ventures Ltd for a 0.25 per cent additional stake at a valuation of about Rs 8.36 lakh crore. The firm invested $250 million in Reliance Retail.
According to the news agency, the discussions with investors as part of Reliance Retail’s internal goal to secure $3.5 billion in funding by the end of September. Earlier, Qatar Investment Authority (QIA) announced a $1 billion investment in the group. According to Reuters sources, Singapore’s GIC, the Abu Dhabi Investment Authority (ADIA), and Saudi Arabia’s Public Investment Fund (PIF) are considering investments of at least $500 million each in Reliance Retail, valuing the company at $100 billion.
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Notably, Reliance told the news agency that it does not “comment on media speculation and rumours.”
According to the report, it’s possible that some of the three investors may contribute less than $500 million each, and discussions are also underway with one or two additional potential investors for the fundraising.
During the 46th AGM of the conglomerate, Reliance Industries (RIL) Chairman Mukesh Ambani had noted that several marquee global strategic and financial investors have shown strong interest in Reliance Retail,
He had that said in less than three years, valuation of Reliance Retail has doubled and the pace of this value creation is “unmatched globally”.
“Several marquee global strategic and financial investors have shown strong interest in Reliance Retail. I will update you about our progress with them in due course. I now invite Isha to report on the progress of our Retail business,” Ambani told shareholders.