Reliance Retail is on track to secure approximately US $ 2.5 billion by September’s end, as it prepares for a potential stock market listing. As per a Reuter’s report, billionaire Mukesh Ambani is engaged in discussions with global investors to reach this fundraising goal, which constitutes a portion of the firm’s US $ 3.5 billion target. Notably, a US $ 1 billion investment from the Qatar Investment Authority was announced in August 2023 as part of this endeavor.
Although investor names are undisclosed, sources suggest that at least two are from the US, and there’s potential involvement from sovereign wealth funds.
If the investment goes through, it will further establish India as an attractive destination for Western Private Investors, particularly in light of rising geopolitical tensions that have made investing in China less appealing.
In 2020, Reliance Retail successfully raised US $ 5.71 billion by selling a 10.09 per cent stake to investors such as KKR, the Saudi Public Investment Fund, General Atlantic, and the United Arab Emirates’ Mubadala.
Ambani said “this week its 2020 fund raise valued the business at around US $ 52 billion and in less than three years, the valuation of retail has almost doubled.”
According to a knowledgeable source, Reliance is expected to make two fund raise announcements in the next two weeks, with the company’s valuation likely to align with the level at which QIA invested, approximately US $ 100 billion. This suggests that a potential US $ 2.5 billion investment would represent a 2.5 per cent stake in the company.
Over the past year, Reliance has been actively expanding its consumer business by acquiring numerous brands. This strategic move aims to establish a consumer business that achieves annual sales of US $ 6 billion within five years, positioning itself as a formidable challenger to foreign industry giants such as Unilever.
