Reliance Retail eyes whopping $1.5bn investment from Gulf, Singapore funds
What's the story
Reliance Retail, India's largest retailer led by the country's wealthiest individual, Mukesh Ambani, is currently engaged in discussions with existing investors, including sovereign wealth funds from Singapore, Abu Dhabi, and Saudi Arabia, reported Reuters. Ambani's goal is to secure approximately $1.5 billion in new investments. This move is part of Reliance Retail's broader strategy to raise a substantial sum of $3.5 billion, a target it hopes to achieve by the end of September.
Details
Recent investments
Reliance Retail has already secured significant investments, including a $1 billion investment from Qatar Investment Authority (QIA) last month and a $250 million investment from KKR & Co. this week. The ongoing talks with investors are part of the company's internal target to raise the remaining funds by the end of September.
What Next?
Sovereign wealth funds eye major stakes
Sources with direct knowledge of the matter reveal that Singapore's GIC, the Abu Dhabi Investment Authority (ADIA), and Saudi Arabia's Public Investment Fund (PIF) are actively considering investing a minimum of $500 million each into Reliance Retail. These potential investments would reportedly be made at a valuation of $100 billion, showcasing the company's strong position in the Indian retail market.
Insights
Continued negotiations and additional investors
While the primary focus is on the three sovereign wealth funds mentioned above, it's worth noting that discussions are also taking place with at least one or two additional investors as part of the overall fundraising strategy. The investment amounts from the three main funds may vary, with some potentially contributing less than the target $500 million. This flexibility demonstrates the company's commitment to exploring various options to meet its financial goals.
What next?
Serious evaluation and future prospects
One source with knowledge of the matter noted that all three sovereign wealth funds have undertaken a thorough evaluation of Reliance Retail, indicating a high level of interest and confidence in the company's growth potential. However, it's important to keep in mind that these investments are still subject to finalization, and the specific funding plans could undergo modifications as negotiations progress.