- The Abu Dhabi Investment Authority (ADIA) has agreed to purchase an additional stake in Mukesh Ambani's rapidly expanding retail unit in India for 49.7 billion rupees ($597 million). This acquisition will give ADIA a 0.6% stake in Reliance Retail Ventures Ltd, according to an exchange filing by parent company Reliance Industries Ltd.
- The deal values India's largest retailer at a pre-money equity value of 8.38 trillion rupees. ADIA had previously invested $750 million in Reliance Retail in October 2020 and an additional $507 million in the conglomerate's fiber-optic assets during the same month. This new investment by ADIA follows a $250 million investment by KKR & Co. in Ambani's retail business, which competes with global giants like Amazon.com Inc. and Walmart Inc. in India.
Why it matters
In August, the Qatar Investment Authority acquired a 0.99% stake in Reliance Retail for $1 billion. Ambani has also expressed plans to bring in more international investors for the retail business. Now led by Ambani's daughter, Isha, Reliance Retail has been actively acquiring companies to establish a strong presence in India's growing retail sector and compete with Amazon.com Inc. and Walmart Inc.
