Reliance Retail Eyes Another $2.5 Billion Fundraise By Month-End

Mukesh Ambani‘s Reliance Retail is reportedly in advanced talks with global investors to raise an estimated $2.5 (around ₹21,000 crore) billion by the end of this month.

What Happened: According to a Reuters report, Reliance Retail Ventures is currently in discussions with global investors to amass around $2.5 billion by the end of this month. This strategic move is possibly a prelude to a possible stock market listing. The target fundraising is part of a wider $3.5 billion agenda set by the company.

Although yet to be confirmed by Reliance, three separate sources have disclosed to the news agency that negotiations are ongoing with a minimum of two U.S.-based investors. Existing overseas investors of Reliance, including a number of sovereign wealth funds, are also demonstrating increased interest.

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In 2020, Reliance Retail raised $5.71 billion (₹47,265 crore) by offloading a 10.09% stake to a consortium of investors including KKR, the Saudi Public Investment Fund, General Atlantic, and the United Arab Emirates’ Mubadala. The investments were at a valuation of ₹4.21 lakh crore.

Why It Matters: This fund-raising initiative comes on the heels of Reliance Retail’s recent successful fund-raising effort from the QIA. As reported on Benzinga Reliance announced last month that the QIA, through a wholly owned subsidiary, will invest ₹8,278 crore in Reliance Retail Ventures at a valuation of ₹8.278 lakh crore.

This investment translates to the QIA owning a 1% stake in the company. This move resulted in a surge in the share price of Reliance. It also marks a significant increase in the company’s valuation, from the valuation in 2020.

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