Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries (RIL) has announced raising Rs 8,278 cr from Qatar Investment Authority (QIA).
- Investment is raised at a pre-money equity valuation of Rs 8.278 lakh crore
- QIA will get 0.99% stake in RRVL on a fully diluted basis
- This fund raise effectively doubles RRVL’s valuation in 3 years
- In 2020, RRVL had raised Rs 47,265 cr from various global investors at a pre-money equity value of Rs 4.21 lakh cr.
- RRVL reported revenues of Rs 260,364 cr and net profits of Rs 9,181 cr for FY 23 – valuing the business at 3.2x of sales and 90x of profits.
Though a significant valuation, it’s lower than the speculated value in the private market by atleast 20-25%.
Nonetheless, RRVL seems to be getting closer to the public listing.
Now KKR is further investing Rs 2,069.50 crore in RRVL, increase it’s stake from 1.17% to 1.42%.
Valuation is same as was for QIA.
The Abu Dhabi Investment Authority (ADIA) is investing Rs 4,966.8 crore in RRVL, through a subsidiary, acquiring a 0.59% stake.
Valuation is similar to QIA.