Riyadh – Mubasher: Saudi Arabia’s Public Investment Fund (PIF) has signed definitive documentation to take over a 2.04% equity stake in Reliance Retail Ventures Limited (RRVL), India’s market-leading at-scale physical retail business, for $1.3 billion.
This investment will further boost PIF’s presence in India’s dynamic economy and promising retail market segment. It also follows an earlier acquisition of a 2.32% stake in Jio Platforms, the digital services subsidiary of Reliance Industries, said a press release on Thursday.
The investment is in line with PIF's strategy and mandate to invest globally in innovative and transformative businesses that generate long-term commercial returns.
India’s retail sector is one of the largest worldwide and accounts for over 10% of its gross domestic product (GDP), presenting meaningful growth potential.
"This transaction demonstrates PIF’s commitment to investing and partnering for the long-term with innovative businesses around the world that lead and transform their sectors,” said PIF governor, Yasir Al Rumayyan.
Reliance Retail Limited, a subsidiary of RRVL, operates India's largest, fast-growing retail business, serving close to 640 million footfalls across its 12,000 stores countrywide.
Moreover, chairman and managing director of Reliance Industries, Mukesh Ambani, remarked: “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."
