Abu Dhabi state fund Mubadala Investment Co will invest Rs 6,247.5 crore to secure 1.4 percent in the retail unit of Reliance Industries (RIL) as investor interest in the Indian company surges.
This latest investment — with Silver Lake’s co-investors and General Atlantic, the fifth in three weeks — values Reliance Retail at a pre-money equity value of Rs 4.285 lakh crore, RIL said in an exchange filing.
Mubadala is the second-biggest state investor in Abu Dhabi after Abu Dhabi Investment Authority, managing about $240 billion in assets.
On September 30, RIL said private equity firm General Atlantic will invest 36.75 billion rupees ($498.31 million) for a 0.84% stake in its retail arm, while Silver Lake co-investors will also buy 18.75 billion rupees ($254.89 million) stake.
The deals reflect growing investor interest in Reliance Retail, which is led by Asia’s richest man Mukesh Ambani. Reliance is seeking investors for its retail arm after raising more than $20 billion in recent months for its digital unit.
Reliance Retail operates India’s largest, fastest growing and most profitable retail business serving close to 640 million footfalls across its nearly 12,000 stores nationwide.
In June, Mubadala invested Rs 9,093 crore in Jio Platforms, the digital services division of RIL. Several of the overseas investors in Jio have now turned their attention to Reliance Retail.
Mubadala typically invests in enterprises that create lasting value and positive economic and social impact in communities at home and overseas, according to its website. Its portfolio companies are spread in sectors such as aerospace, agri business, information and communication technology (ICT), semiconductors, metals and mining, pharmaceutical and medical technology, renewable energy and utilities. It also manages diverse financial holdings.
The transaction is subject to regulatory and other customary approvals.