Qatar fund to buy 1% stake in Reliance Retail for Rs 8,278 crore

MUMBAI: Qatar’s sovereign wealth fund on Wednesday announced an investment of Rs 8,278 crore for nearly a 1% stake in Reliance Retail Ventures. The Qatar fund will be the ninth foreign investor in Reliance Retail, which has raised Rs 55,543 crore by offloading around 11% stake since September 2020.
The investment by Qatar Investment Authority (QIA), which has routed the deal through a wholly-owned subsidiary, values Reliance Retail at nearly Rs 8.3 lakh crore. India’s largest company in terms of market value, Reliance Industries (RIL) owns 88.9% of Reliance Retail, with the remaining 11.08% held by overseas investors such as Public Investment Fund of Saudi Arabia, Abu Dhabi’s Mubadala, US’s Silver Lake, KKR and General Atlantic.

Reliance Retail, through its subsidiaries and affiliates, is the country’s top retailer that spans from luxury fashion to groceries. With a turnover of Rs 2.6 lakh crore and a profit of Rs 9,181 crore in fiscal 2023, it operates over 18,500 stores.
The Reliance Retail investment comes a little over two weeks after the wealth fund invested Rs 3,920 crore ($474 million) for a nearly 3% stake in Adani Green Energy.
QIA, which has been increasing its bet on the world’s fifth-largest economy, said it sees high growth potential in India’s fast-growing retail market. It had backed food delivery startup Swiggy, edtech platform Bjyu’s, and Adani Electricity, which supplies power to large parts of Mumbai. “We are looking forward to Reliance Retail Ventures, with its strong vision and impressive growth trajectory, joining our growing and diverse portfolio of investments in India,” said QIA CEO Mansoor Ebrahim Al-Mahmoud. QIA also holds a stake in RIL’s media and entertainment business through Bodhi Tree Systems.
In recent years, Reliance Retail has been ramping up its business by gaining the franchise rights of international brands for the Indian market and foraying into newer areas like FMCG.