Reliance Industries Ltd (RIL) announced on Thursday that Saudi Arabia’s sovereign Public Investment Fund (PIF) is investing Rs 9,555 crore ($1.3 billion) in Reliance Retail Ventures Ltd.
PIF earlier acquired 2.32% stake in Jio Platforms, the digital services subsidiary of Reliance Industries.
PIF, founded in 1971, is the sovereign wealth fund of Saudi Arabia.
It was founded for the purpose of investing funds on behalf of the Government of Saudi Arabia.
PIF is developing a portfolio of high quality domestic and international investments diversified across sectors, geographies and asset classes.
PIF is one of the largest sovereign wealth funds in the world.
Spread across the country, Reliance Retail Limited a subsidiary of RRVL, operates India’s largest, fastest growing and most profitable retail business.
It is serving close to 640 million footfalls across 12,000 stores in India
Public Investment Fund (PIF) to pick 2.04% stake in Reliance Retail Ventures Ltd (RRVL)
This investment values RRVL at a pre-money equity value of ₹ 4.587 lakh crore.
Other Investors with PIF
A clutch of investors such as Singapore’s sovereign wealth fund GIC, global alternative asset firm TPG Abu Dhabi Investment Authority, Mubadala Investment Co, General Atlantic, KKR and Silver Lake (twice) have purchased stakes in the company.
Comment from Chairman of RIL
“We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia.
PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia.
I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants”, Mukesh Ambani
Comment from Governor of PIF
“We are pleased to be furthering our trusted partnership with Reliance Industries, the leading player in some of India’s most exciting sectors.
This transaction demonstrates PIF’s commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors.”
“This investment further demonstrates PIF’s commitment to generating returns for the Saudi people and driving the economic diversification of Saudi Arabia”, Yasir Al-Rumayyan