together investing $1.7 billion in the Indian firm<\/a>, which is part of Mukesh Ambani\u2019s Reliance Industries.<\/p>\nAbu Dhabi sovereign-wealth fund\u2019s investment will fetch it a 0.59% stake in Reliance Retail.<\/p>\n
\u201cWe are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures Limited,\u201d said Ambani in a prepared statement. \u201cTheir long-standing experience of over decades of value creation globally will further benefit us in implementing our vision and driving transformation of the Indian retail sector. ADIA\u2019s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy and execution capabilities.\u201d<\/p>\n
The investment comes at a time when Reliance Retail is expanding into new categories, including low-cost fast-fashion, and is also considering a public listing. The company, which also recently partnered with Shein to help the Chinese e-commerce firm reenter India, has purchased and integrated a number of other businesses.<\/p>\n
Reliance Retail has also made a push into e-commerce in recent years, including maintaining a tie-up with Meta\u2019s WhatsApp to sell grocery through the instant messaging app. Though Walmart-owned Flipkart and Amazon India currently lead the local e-commerce market, analysts believe that Reliance will eventually outpace both firms.<\/p>\n
AllianceBernstein estimated in a note earlier this year that Reliance\u2019s robust retail network, sweeping mobile network and digital ecosystem and a \u201chome field advantage\u201d in a notoriously challenging regulatory landscape will help the Indian conglomerate beat online rivals.<\/p>\n
\u201cThe medium-term investment case for RIL is driven by: (1) strong cash flows and ability to invest in growth businesses and (2) potential value-unlocking in the medium term: We believe the operating earnings downgrade cycle for RIL is likely behind us, with energy driving FY24 and consumer pick-up likely in FY25. Jio+Retail capex should fall sharply from FY25 even as earnings pick up. Beyond earnings, we believe potential value-unlocking via stake sales\/IPO\/listings could be a material stock price driver over the next 2-3 years,\u201d wrote JPMorgan analysts in a note last month.<\/p>\n
Reliance Industries, which owns the majority of Reliance Retail Ventures and is the largest company by market cap in India, has aggressively expanded into a wide range of sectors, including telecom and on-demand video streaming, in the past decade as it diversifies from its reliance on oil. Isha, the daughter of Mukesh Ambani, leads the retail business.<\/p>\n
\u201cReliance Retail has demonstrated strong growth and adaptability in a market that is evolving at an unprecedented pace,\u201d said Hamad Shahwan Aldhaheri, executive director of the Private Equities Department at ADIA, in a statement.<\/p>\n
\u201cThis investment aligns with our strategy of supporting our portfolio companies that are transforming their respective end-markets. We are pleased to partner with the Reliance Group, and increase our exposure to India\u2019s dynamic and fast-growing consumer sector.\u201d<\/p>\n<\/p><\/div>\n
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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Abu Dhabi Investment Authority is investing $597 million in Reliance Retail, valuing the largest Indian retail chain at a whopping $100 billion. The investment follows KKR and Qatar Investment Authority together investing $1.7 billion in the Indian firm, which is part of Mukesh Ambani\u2019s Reliance Industries. Abu Dhabi sovereign-wealth fund\u2019s investment will fetch it a […]<\/p>\n","protected":false},"author":1,"featured_media":44221,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":{"0":"post-44220","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tech"},"_links":{"self":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/44220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=44220"}],"version-history":[{"count":0,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/44220\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/44221"}],"wp:attachment":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=44220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=44220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=44220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}