Reliance Retail Ventures, owned by Indian billionaire Mukesh Ambani, is in advanced discussions with international investors to raise around $2.5 billion by the end of September in preparation for a prospective stock market listing, according to people familiar with the situation who spoke to Reuters.
According to three sources, the $2.5 billion target fundraising is a portion of the $3.5 billion overall aim the firm has set for itself, of which $1 billion was provided by the Qatar Investment Authority (QIA) and revealed last month.
Reliance Retail stated via email: “As a policy, we do not comment on media speculation and rumors.” However, the business also stated: “Our company evaluates various opportunities on an ongoing basis.”
Last month, Reliance announced that it had raised $1 billion from QIA at a valuation of $100 billion for India’s largest retailer, whose activities range from the sale of groceries to electronics and include international relationships with companies like Burberry and Pret A-Manger.
Morgan Stanley is providing advice. Dependence on the procedure, according to two sources with firsthand experience. A request for comment from Morgan Stanley received no response.
All three sources shied away from mentioning specific investors. However, the first source claimed that Reliance was in talks with at least two American investors, while the other two sources claimed that Reliance’s current overseas investors, including several sovereign wealth funds, were becoming more interested.
If the investment happens, India’s reputation as a lone bright spot for Western private investors who are avoiding new projects in China because of the nation’s deteriorating economic prospects and geopolitical concerns will be strengthened.
By selling a 10.09% share to investors such as KKR, the Saudi Public Investment Fund, General Atlantic, and Mubadala of the United Arab Emirates in 2020, Reliance Retail was able to raise $5.71 billion.
