A day after bagging an investment of INR 1,875 Cr in its retail unit, Reliance Retail, at a pre-money equity value of INR 4.285 Lakh Cr from Silver Lake, Mukesh Ambani-led Reliance Industries said on Thursday that Abu Dhabi’s sovereign fund, Mubadala Investment Co, would invest INR 6,247 Cr.
The deal will give Mubadala a 1.4% stake, valuing Reliance Retail before the investment at INR 4.28 lakh Cr.
The latest deal has taken the total overseas investments announced in Reliance Retail in the past three weeks to nearly INR 24,850 Cr, for a 5.65% stake, making the company one of the hottest global investment destinations in recent months.
Reliance Retail funding spree was flagged off by Silver Lake, who invested INR 7,500 Cr for a 1.75% stake at a pre-money equity value of INR 4.21 lakh Cr in September 2020. Overall, Silver Lake and its co-investors have pumped in INR 9,375 Cr in Reliance Retail, which translates into 2.13% equity shares.
I am happy to welcome Mubadala as a valued investor in Reliance Retail Ventures. We value the partnership with a knowledge-rich organisation 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.
– Mukesh Ambani, chairman and managing director of Reliance Industries
Mubadala Investment Company’s managing director and group CEO Khaldoon Al Mubarak said, “We are pleased to deepen our relationship with Reliance Industries through this investment in Reliance Retail Ventures. Their vision is the inclusive transformation of India’s consumer economy through the power of digitisation, creating opportunities and market access for millions of small businesses across the country, and we are committed to supporting the company’s continuing development.”
Abu Dhabi’s Mubadala has made an investment in more than 50 countries across several sectors like aerospace, information and communications technology, real estate and infrastructure, petroleum and petrochemicals, healthcare, renewables, utilities, semiconductors, metal and mining. It has over 5 global offices and over $229 Bn Assets Under Management.
Mubadala has also been one of the key limited partners in SoftBank’s Vision Fund I, which recently announced $17.7 Bn in losses. Since the WeWork controversy devaluation and losses, the Abu Dhabi investment fund has been skeptical about SoftBank’s Investment as well.