Saudi PIF to invest $1.3 billion in Reliance Retail for 2.04% stake

Reliance Industries Limited (RIL) on Thursday (November 5) announced that Saudi Arabia’s Public Investment Fund (PIF) will invest ₹9,555 crore ($1.3 billion) in Reliance Retail (RRVL) for a 2.04 per cent equity stake. The investment values RRVL at a pre-equity value of ₹4.587 lakh crore ($62.4 billion).

PIF had invested ₹11,367 crore in Jio Platforms to pick 2.32 per cent stake in June. Announcing the deal in a statement, RIL said the latest investment will “further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment”.

“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,” RIL’s chairman and managing director Mukesh Ambani said in the statement.

The Saudi firm’s investment is the largest in RRVL so far, more than Silver Lake’s September investment of ₹7,500 crore to acquire a 1.75 per cent stake in Reliance Retail.

The investment is being seen as a part of efforts by RIL to raise about ₹60,000-63,000 crore by selling a 15 per cent stake in RRVL.

In a statement, PIF governor Yasir Rumayyan said the investment shows the fund’s commitment to investing for the long-term with innovative businesses and to driving the economic diversification of Saudi Arabia, Reuters reported.