Qatar fund to buy 1% stake in Reliance Retail for Rs 8,278 crore

MUMBAI: Qatar’s sovereign wealth fund on Wednesday introduced an funding of Rs 8,278 crore for almost a 1% stake in Reliance Retail Ventures. The Qatar fund would be the ninth international investor in Reliance Retail, which has raised Rs 55,543 crore by offloading round 11% stake since September 2020.
The funding by Qatar Funding Authority (QIA), which has routed the deal by way of a wholly-owned subsidiary, values Reliance Retail at almost Rs 8.3 lakh crore. India’s largest firm when it comes to market worth, Reliance Industries (RIL) owns 88.9% of Reliance Retail, with the remaining 11.08% held by abroad buyers akin to Public Funding Fund of Saudi Arabia, Abu Dhabi’s Mubadala, US’s Silver Lake, KKR and Basic Atlantic.

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Reliance Retail, by way of its subsidiaries and associates, is the nation’s prime retailer that spans from luxurious style to groceries. With a turnover of Rs 2.6 lakh crore and a revenue of Rs 9,181 crore in fiscal 2023, it operates over 18,500 shops.
The Reliance Retail funding comes just a little over two weeks after the wealth fund invested Rs 3,920 crore ($474 million) for an almost 3% stake in Adani Inexperienced Power.
QIA, which has been growing its guess on the world’s fifth-largest financial system, mentioned it sees excessive progress potential in India’s fast-growing retail market. It had backed meals supply startup Swiggy, edtech platform Bjyu’s, and Adani Electrical energy, which provides energy to massive components of Mumbai. “We’re wanting ahead to Reliance Retail Ventures, with its robust imaginative and prescient and spectacular progress trajectory, becoming a member of our rising and various portfolio of investments in India,” mentioned QIA CEO Mansoor Ebrahim Al-Mahmoud. QIA additionally holds a stake in RIL’s media and leisure enterprise by way of Bodhi Tree Techniques.
Lately, Reliance Retail has been ramping up its enterprise by gaining the franchise rights of worldwide manufacturers for the Indian market and foraying into newer areas like FMCG.

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