Through its wholly-owned subsidiary, the Abu Dhabi Investment Authority (ADIA) plans to invest Dh2.2bn ($597.58m) in Reliance Industries Limited (RIL), a subsidiary of Reliance Retail Ventures Limited (RRVL).

Regarding pre-money equity value, the investment values RRVL at Rs8.381trn and makes it one of the country’s top four companies by equity value.

It translates into a stake of 0.59% in the retailer on a fully diluted basis.

The transaction is subject to customary approvals.

RRVL executive director Isha Mukesh Ambani said: “We are pleased to further deepen our relationship with ADIA with their continued support as an investor in Reliance Retail Ventures Limited.

“Their 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’s investment in RRVL is a further testament to their belief in the Indian economy and our business fundamentals, strategy and execution capabilities.”

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By GlobalData

RRVL, through its subsidiaries and associates, operates a network of more than 18,500 stores and digital commerce platforms, serving 267 million customers.

The retailer offers grocery, consumer electronics, fashion and lifestyle and others.

The investment from ADIA comes after RRVL announced last month that it is in talks with existing investors for new investments of around $1.5bn.

ADIA private equities department executive director Hamad Shahwan Aldhaheri said: “This 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’s dynamic and fast-growing consumer sector.”

In August this year, sovereign wealth fund Qatar Investment Authority invested Rs82.78bn (QR3.6bn) into the retailer.