Reliance surges on ADIA investment in RIL retail arm
Reliance Industries Limited (RIL), a multinational conglomerate announced on Tuesday after the market hours that a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA) will invest Rs 5,512.50 crore into RIL’s subsidiary i.e. Reliance Retail Ventures Limited (RRVL). Reacting to this news, the company's share gained during the early trade on Wednesday.
The investment by ADIA will convert into a 1.20 per cent equity stake in RRVL on a fully-diluted basis, valuing RRVL at a pre-money equity value of Rs 4.285 lakh crore. This is the fifth investment in RRVL after other leading global investors namely Silver Lake, KKR, General Atlantic, Mubadala, GIC & TPG invested a total of Rs 37,710 crore in less than four weeks.
Reliance Retail is leveraging on its physical & digital supply chains by establishing itself as one of the leading retail businesses in India and thus, it’s now strongly positioned for future growth.
At around 11.23 am, Reliance Industries was trading at Rs 2,284.3 with a growth of 3.35 per cent. The share reached its intraday high of Rs 2,309.4 on BSE.