India’s Reliance Industries to sell additional stake in retail arm: report

INDIA’S Reliance Industries is likely to sell an additional 8-10 per cent stake in its retail arm Reliance Retail Ventures to fund expansion, retire debt and prepare for a public listing of the conglomerate’s retail business, the Economic Times reported on Friday (Aug 25).

This process will most likely take 12-15 months and will be vital for the projected initial public offering of Reliance’s retail operations, the report added, citing industry sources.

Reliance did not immediately respond to a request seeking comments.

Reliance resumed fundraising on Wednesday after Qatar Investment Authority announced a US$1 billion investment for a 1 per cent stake in the retail arm, nearly doubling its valuation to US$100 billion from its last funding round in 2020.

Reliance Retail, India’s largest retailer, has been partnering with a slew of global brands such as Burberry, Pret A Manger and Tiffany to launch and expand their presence in India.

It last raised about 472.65 billion rupees (S$7.76 billion) from more than half a dozen investors, including KKR, General Atlantic, the Saudi Public Investment Fund and the UAE’s Mubadala in 2020.

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Qatar’s investment will help Reliance fund its future capital expenditure and keep retail debt under control, CLSA said in a report on Thursday.

Led by billionaire Mukesh Ambani’s daughter Isha Ambani, Reliance Retail Ventures houses retail operations, including international partnerships and consumer goods business. REUTERS