Reliance Retail In Talks To Raise Fresh $1.5 Bn from Existing Investors

After securing $250 million from American global investment company KKR & Co Inc just a few days back, Reliance Retail is planning to raise another fresh funds from its existing investors including the sovereign wealth funds of Singapore, Abu Dhabi and Saudi Arabia for combined new fundraise of around $1.5 billion, reported news agency Reuters, citing three sources with direct knowledge of the development.

Reliance Retail is in talks with the investors as per its internal target of raising $3.5 billion by the end September. The company has raised 1.25 billion in total, in last two months.

Notably, QIA last month announced a $1 billion investment and KKR & Co this week $250 million.

Singapore's GIC, the Abu Dhabi Investment Authority (ADIA) and Saudi Arabia's Public Investment Fund (PIF) are looking to invest at least $500 million each in Reliance Retail at a valuation of $100 billion, said the Reuters report citing one of its sources.

The report further states that some of the investors may invest less than $500 million, and thus, Reliance Retail is also looking at some other investors for raising funds to complete its target of $1 billion.

Additionally, Reliance Industries, the parent of Reliance Retail, could also invest in the ongoing fundraising round.

GIC, PIF and ADIA are among the world's biggest investment funds, and together they own a 4.4% stake in Reliance Retail.

GIC is Sovereign wealth fund established by the Government of Singapore in 1981. It has invested in more than 40 countries worldwide and manages the Singapore's foreign reserves.

Reliance Retail's parent Reliance Industries is India’s largest private sector company, with a consolidated revenue of INR 9,74,864 crore (US$118.6 billion), cash profit INR 1,25,951 crore (US$ 15.3 billion) and net profit of INR 73,670 crore (US$9.0 billion) for the year ended March 31, 2023.

Post a Comment

Previous Post Next Post
Like this content? Sign up for our daily newsletter to get latest updates.