Mukesh Ambani’s big decision, now Reliance will sell stake in this company!

Reliance Share Price: Global companies are now showing their interest to buy stake in Reliance (RIL). Qatar’s sovereign wealth fund QIA is in early talks to take a stake of around one per cent in Reliance Group’s retail arm. Sources gave this information on Wednesday. Sources said that Qatar Investment Authority (QIA) may acquire one percent stake in Reliance Retail Ventures Limited (RRVL) for one billion dollars or about Rs 8,200 crore. In this sense, RRVL will be valued at around $100 billion.

The conversation has just begun

RRVL is the holding company of the retail business of Reliance Industries. The move will help RRVL further accelerate its expansion. Sources said that these talks are still at an early stage. It is headed by an Executive Director on the Board of Directors of Reliance Industries Limited.

Information given to the media
When contacted, a Reliance Retail spokesperson told PTI that the company continues to evaluate various opportunities on an ongoing basis. It is our principle that we do not comment on market speculation. Earlier this month, media reports said the company had appointed two global advisors valuing RRVL at $92-96 billion.

RRVL will expand business in India
RRVL is rapidly expanding its business in India by acquiring companies. In addition, it is also acquiring the franchise rights of leading international brands for the Indian market. Earlier this month, Reliance Retail said it is reducing the equity share capital held by shareholders other than its promoter and holding company.

Capital reduction plan
The Board of Directors of the Company had on 4 July 2023 approved the proposal to cancel the capital of such shareholders under the capital reduction scheme. If the talks are successful, QIA will join other Gulf sovereign wealth funds that hold stakes in Reliance Retail. RRVL raised Rs 47,265 crore (about $6.4 billion) from global private equity funds by selling a 10.09 percent stake in 2020. At that time, the company’s valuation had crossed Rs 4.2 lakh crore.

At that time, Saudi Arabia’s Public Investment Fund (PIF) acquired a 2.04 percent stake in Reliance Retail Ventures for $1.3 billion. Apart from this, Abu Dhabi Investment Authority (ADIA) bought 1.2 per cent stake for Rs 5,513 crore and UAE’s Mubadala bought 1.4 per cent stake for Rs 6,248 crore. The company also raised funds from Silver Lake, KKR, GIC, TPG and General Atlantic at a valuation of around $57 billion at the time.

RIL has 85 percent stake
Reliance Industries has 85 percent stake in RRVL. JP Morgan said on the proposed deal that the talks show that Reliance has multiple options for taking stakes in various businesses.

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