Mukesh Ambani’s, Reliance Retail Ventures, is in talks with global investors to raise around $2.5 bn by the end of September, Morgan Stanley being the key advisor.
Mukesh Ambani’s words
"Several marquee global strategic and financial investors have shown strong interest in Reliance Retail. I will update you about our progress with them in due course," Ambani said during the company's recent annual general meeting, without sharing further details.
Justification
Reliance Retail, led by Isha Ambani with 18k+ outlets & a strong competitor of Amazon & Flipkart, is planning to raise $2.5 bn.
According to the sources
This raising is part of the company’s target to raise $3.5 bn with $1 bn that came from Qatar Investment Authority (QIA) which was announced last month.
The company is in talks with at least two US-based investors, two sources said, while others told about the growing interest of existing foreign investors of Reliance.
The company, valued at $52 billion this week, raised $5.71 billion by selling a 10.09% stake to investors including KKR, the Saudi Public Investment Fund, General Atlantic and the \United Arab Emirates' Mubadala in 2020. This valuation of its retail segment has doubled within 3 years.
A/c to a source, the valuation of the company will be around $100 bn, the same at which QIA invested in the business. An infusion of capital worth $2.5 bn will be equivalent to a 2.5% stake in the company.
For the FY 22-23, the company reported an impressive consolidated net profit of $1.11 bn (INR 91.81 bn) on revenue of INR 2.6 trillion.
The company is constantly growing & expanding by targeting & acquiring small grocery & non-food brands with a vision to generate annual sales of $6 bn within 5 years, to challenge big market players like Unilever.
