Reliance Retail receives Rs 8,278 cr from Qatar Investment Authority, allots 6.86 crore shares
Qatar Investment Authority (QIA) for around 1 per cent stake in Reliance Retail Ventures Ltd (RRVL), the retail arm of billionaire Mukesh Ambani-led group.
As per the deal, it has allotted 6.86 crore equity shares to QIA of RRVL, which is the leading retailer in the country, said a regulatory filing from Reliance Industries Ltd (RIL).
«Reliance Retail Ventures Ltd today received the subscription amount of Rs 8,278 crore from Qatar Holding LLC (QIA) and allotted 6,86,35,010 equity shares to QIA,» said RIL.
The investment is made by QIA's wholly-owned subsidiary into India's largest retailer at a valuation of Rs 8.278 lakh crore (USD 100 billion).
Earlier on August 23, RIL had announced divesting 1 per cent stake in RRVL to QIA for a consideration of Rs 8,278 crore (USD 1 billion).
Updating about the development, Reliance Industries had said: «QIA's investment will translate into a minority equity stake of 0.99 per cent in RRVL on a fully diluted basis.»
Last month in the AGM of Reliance Industries, its Chairman Mukesh Ambani had said several marquee global strategic and financial investors have shown strong interest in Reliance Retail.
Addressing shareholders, he had said if RRVL was listed on stock exchanges, then based on the current valuation, it would be among the top four listed entities in the country.
In less than three years, the valuation of Reliance Retail has doubled and the pace of this value creation is «unmatched globally», Ambani had said.
Referring to around 1 per cent stake purchase by Qatar Investment Authority (QIA) in Reliance Retail Venture Ltd (RRVL) by investing Rs 8,278 crore (USD one billion) at a valuation of USD 100 billion, Mukesh Ambani had said the company's valuation has doubled in less than
