Stake sale. Reliance Industries to sell additional stake in retail arm

Reuters Updated - August 25, 2023 at 09:38 AM.

According to reports, the additional stake sale would fund expansion, retire debt and prepare for a public listing of the retail business

BENGALURU, August 25 Reliance Industries is likely to sell an additional 8-10% stake in its retail arm Reliance Retail Ventures to fund expansion, retire debt and prepare for a public listing of the conglomerate's retail business, a media outlet reported on Friday.

This process will most likely take 12-15 months and will be vital for the projected initial public offering of Reliance's retail operations, the report added, citing industry sources.

Reliance did not immediately respond to a request seeking comments.

Reliance resumed fundraising on Wednesday after Qatar Investment Authority announced a $1 billion investment for a 1 per cent stake in the retail arm, nearly doubling its valuation to $100 billion from its last funding round in 2020.

Reliance Retail, India's largest retailer, has been partnering with a slew of global brands like Burberry, Pret A Manger and Tiffany to launch and expand their presence in India.

It last raised about Rs 47,265 crore from more than half a dozen investors, including KKR, General Atlantic, the Saudi Public Investment Fund and the UAE's Mubadala in 2020.

Qatar's investment will help Reliance fund its future capital expenditure and keep retail debt under control, CLSA said in a report on Thursday.

Led by billionaire Mukesh Ambani's daughter Isha Ambani, Reliance Retail Ventures houses retail operations, including international partnerships and consumer goods business.

Published on August 25, 2023 04:00

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