Saudi Arabian sovereign wealth fund Public Investment Fund (PIF) has picked up a 2.04 per cent stake in Reliance Retail Ventures Ltd (RRVL) for ₹9,555 crore.

The  investment values RRVL at a pre-money equity value of ₹4.6-lakh crore (approximately $62.4 billion). PIF had earlier acquired a 2.32 per cent stake in Jio Platforms, the digital services subsidiary of Reliance Industries Ltd (RIL).

The latest investment is a step towards PIF strengthening its growth in India’s retail sector, which accounts for over 10 per cent of its GDP, said RIL in a press statement.

 Reliance has a long-standing relationship with Saudi Arabia, said RIL’s CMD Mukesh Ambani in the statement. PIF is at the forefront of the economic transformation of the kingdom, and its  investment takes Reliance Retail’s “ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants”, he added.

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Yasir Al-Rumayyan, Governor of PIF, said  the deal demonstrates PIF’s commitment to generating returns for the Saudi population and driving the economic diversification of the nation.

During the quarter  ended  September 30, Reliance Retail raised ₹37,710 crore from  global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA by divesting a 8 per cent stake in all. These investments, according to JP Morgan’s analysts, will help Reliance Retail  strengthen its new commerce capabilities.

Also read: Reliance Retail raises second investment in a single day

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Reliance Retail has been making its own acquisitions — including Future Retail, Netmeds, Grab, Nowfloats, C-Square and Shopsense — as part of its strategy to expand into new retail segments.

Omnichannel push

These investments, according to market watchers, will accelerate the ramping up of Reliance Retail’s omnichannel approach and JioMart besides the new commerce segment. It will also help in enhancing its supply chain and fulfilment capacities, analysts said.

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