InvestorQ : How do you see the latest investment of PIF of Saudi Arabia in Reliance Retail?
diksha shah made post

How do you see the latest investment of PIF of Saudi Arabia in Reliance Retail?

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Rutuja Nigam answered.
8 months ago
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The Public Investment Fund or PIF of Saudi Arabia, a sovereign fund based out of the Middle East, will invest a massive sum of Rs.9,555 crore into Reliance Retail Ventures. From the Middle East, already Mubadala and ADIA have already invested in Reliance Retail.

RRVL has already sold stake to some of the leading PE funds in the world and most of these investors are common between Jio Platforms and Reliance Retail Ventures. Clearly, Reliance has created a retail and digital property that is much in demand.

This investment will give PIF a 2.06% stake in RRVL and is a good signals that sovereign funds are getting interested in the long term story of RIL. After all, RIL has also the leverage that it is one of the largest buyers of Arab oil for its massive refinery operations.

If you see the latest quarterly results of Reliance Industries, the retail business has already emerged as the second largest division accounting for 24% of the total revenues of the Reliance group, just after refining business. Of course, being a long gestation business, it does lag in profits but that is being made up by Jio in EBITDA terms.

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