Share price of Reliance Industries rose around 4 per cent on Wednesday after the Indian conglomerate announced that its retail arm, Reliance Retail Ventures Ltd (RRVL), will receive Rs 5,512.50 crore from Abu Dhabi Investment Authority (ADIA).
At 2.24 p.m. the stock was trading at Rs 2,290.00, up by Rs 79.85 or 3.61 per cent on the BSE. Earlier, company’s stocks jumped 4.49 per cent to hit day’s high of Rs 2,309.40.
After hitting day’s high of Rs 2,309, company’s shares were trading up by 79.45 or 3.59 per cent at Rs 2,289.80 in the afternoon.
“A wholly owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) will invest Rs 5,512.50 crore into RRVL, a subsidiary of Reliance Industries. This investment values RRVL at a pre-money equity value of Rs 4.285 lakh crore. ADIA’s investment will translate into a 1.20 per cent equity stake in RRVL on a fully diluted basis. With this investment, RRVL has raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks,” said billionaire Mukesh Ambani-owned conglomerate.
With this latest investment RRVL has raised Rs 37,710 crore from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA in less than four weeks.
Reliance Industries is India’s largest private sector company, with a consolidated turnover of Rs 659,205 crore ($87.1 billion), cash profit of Rs 71,446 crore ($9.4 billion), and net profit of Rs 39,880 crore ($5.3 billion) for the year ended March 31, 2020.