PIF-Reliance Retail deal: Saudi fund to buy 2.04% in RIL unit for Rs 9,555 crore

The investment by PIF, a sovereign wealth fund, in Reliance Retail Ventures (RRVL) follows its earlier acquisition of 2.32% of Jio Platforms, the digital unit of Reliance Industries. RIL has so far sold 10.09% in RRVL for a total Rs 47,265 crore.

Reliance Industries (RIL) said Saudi Arabia’s Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds, will invest Rs 9,555 crore, or roughly $1.3 billion, in its retail unit in exchange for a 2.04 percent.

This investment — a record eighth investment by marquee global investors— values Reliance Retail Ventures Limited (RRVL) at a pre-money equity value of Rs 4.587 lakh crore (around $62.4 billion).This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment. The investment in RRVL follows PIF’s earlier acquisition of a 2.32 percent stake in Jio Platforms, the digital services subsidiary of RIL.RIL has so far sold 10.09 percent in RRVL, India’s largest retailer, for a combined Rs 47,265 crore.

A clutch of investors such as Singapore's sovereign wealth fund GIC, global alternative asset firm TPG Abu Dhabi Investment Authority, Mubadala Investment Co, General Atlantic, KKR and Silver Lake (twice) have purchased stakes in the company.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, "We at Reliance have a long-standing relationship with the Kingdom of Saudi Arabia. PIF is at the forefront of the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Reliance Retail and look forward to their sustained support and guidance as we continue our ambitious journey to transform India’s retail sector for enriching the lives of 1.3 billion Indians and millions of small merchants."

What is PIF?
PIF, founded in 1971, is the sovereign wealth fund of Saudi Arabia. It was founded for the purpose of investing funds on behalf of the Government of Saudi Arabia. PIF is developing a portfolio of high quality domestic and international investments diversified across sectors, geographies and asset classes.

PIF operates through six investment pools comprising local and global investments in line with its objectives to actively invest over the long term to maximize sustainable returns, be the investment partner of choice for global opportunities, and enable the economic development and diversification of the Saudi economy.

PIF aims to be a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.

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