Reliance Retail's Meteoric Rise, Seeking $1.5 Billion to Hit $100 Billion Valuation
Global Investors Bet Big on Reliance Retail's $3.5 Billion Ambition
14 September 2023
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Kunal Tyagi
Reliance Retail, led by Isha Ambani, seeks a $1.5 billion investment from existing investors, including sovereign wealth funds from Singapore, Abu Dhabi, and Saudi Arabia.
The company's ambitious goal is to raise $3.5 billion by the end of September, with commitments already secured from Qatar Investment Authority (QIA) and KKR & Co.
Renowned global investors GIC, ADIA, and PIF are each considering contributing at least $500 million, potentially valuing Reliance Retail at $100 billion.
Reliance Retail, led by Isha Ambani, is making waves in the corporate world with its ongoing discussions to secure a significant investment of $1.5 billion from existing investors, which include sovereign wealth funds from Singapore, Abu Dhabi, and Saudi Arabia. This development, reported by Reuters, is part of the company's ambitious goal to raise a total of $3.5 billion by the end of September this year. The conglomerate has already received commitments from various investors, including a substantial $1 billion investment from the Qatar Investment Authority (QIA), as well as a recent announcement by KKR & Co. injecting $250 million into the company.
These ongoing negotiations hold significant importance for Reliance Retail, as they aim to position the company at a valuation of $100 billion. Key investors in this round, including Singapore's GIC, the Abu Dhabi Investment Authority (ADIA), and Saudi Arabia's Public Investment Fund (PIF), are each looking to contribute at least $500 million. However, sources suggest that some of these investors might choose to invest less than $500 million. As a result, the company is actively exploring other potential investors to reach its fundraising target.
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GIC, PIF, and ADIA are renowned as some of the world's largest and most influential investment funds, collectively owning a 4.4% stake in Reliance Retail. Notably, Reliance Industries, the parent company of the retail arm, also plans to participate in the ongoing fundraising round. This multifaceted approach underscores the company's determination to secure substantial investments for its expansion and growth.
The recent history of Reliance Retail's valuations and investments provides context for these developments. In 2020, the company divested a 10.09% share of its retail division, valuing it at a staggering 4.68 trillion rupees ($56.4 billion). During this transaction, GIC and ADIA each contributed $664 million, while PIF significantly invested $1.15 billion. These investments underscore the faith these global investors have in the potential of India's largest retailer.
In a recent statement, Isha Ambani hinted at the growing interest in Reliance Retail from "prominent global strategic and financial investors." While specific names were not disclosed, it is clear that the company has garnered significant attention on the global stage. This latest development aligns with Ambani's earlier announcement in 2019 regarding Reliance's intention to list the retail business within a five-year timeframe, signaling the company's intent to continue its upward trajectory in the retail sector.
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