Reshab AgarwalAfter the recent investment of Silver Lake of Rs 1875 crores in Reliance Retail, and Abu Dhabi’s Mubadala’s reports to invest $1 billion in the company. Now, the company is going to receive an investment of $750 million from Abu Dhabi investment authority. Reliance announced on Tuesday that ADIA is going to invest 55.13 billion rupees.
Recent investments in Reliance
Being on an investment spree, Reliance Retail has already raised $2.5 billion from KKR, General Atlantic, and Silver Lake. In addition to these investments, Jio platforms have also received over $20 billion in investment. Even Mubadala, who might invest $1 billion in Reliance Retail, has already invested $1.2 billion in the company’s Jio platforms.
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After Reports from Mobile Reuters sources said, “Mubadala is ready with $1 billion for Reliance Retail and doing due diligence”. A second source also said, “the talks were at an advanced stage and said the investment could be anywhere between $500 million and $1 billion”.
Now, Reliance has announced that the company is going to receive another investment of 55.13 billion rupees from ADIA. And this is going to raise the stake of Abu Dhabi investment authority in Reliance to 1.20%.
Reliance’s move and goals
With more and more companies showing interest in Reliance Retail and many other platforms, I am very optimistic about the company’s performance. Being the richest man in India and having a powerful business sense, Mukesh Ambani brings trust for it’s new and old investors. This is why we might soon see Abu Dhabi’s Mubadala investing another $1 billion in the company.
The pace with which Reliance is expanding into both the digital and offline market might soon become a business superpower all over the world. Till Mukesh Ambani manages the company, I think it will continue receiving good investments from MNCs and individual investors. It is the 2nd investment that the company might be receiving from Abu Dhabi. This shows good relations that the company has with the foreign government and investors.
It seems that Reliance’s move of buying a stake in Future Retail is paying off. The funds the company is raising is going to increase the reach of Future Retail to small businesses and thus increase RRVL’s profits. Presently they recorded a complete turnover of Rs 1.62 lakh crore and a net profit of Rs 5,448 crore for the financial year ended March 31, 2020.
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