Mukesh Ambani is busy raising money from Singapore-Saudi Arabia, what is the reason? - Newztezz Online


Thursday, September 14, 2023

Mukesh Ambani is busy raising money from Singapore-Saudi Arabia, what is the reason?

Industrialist Mukesh Ambani is currently raising funding for his retail business. After recently receiving investment from KKR, it is now in touch with Singapore, Abu Dhabi and Saudi Arabia. After all, what is the reason for this?

Asia's richest man and industrialist Mukesh Ambani is trying to raise money these days from Singapore to Abu Dhabi and Saudi Arabia. He is in talks to raise about $ 1.5 billion from investors for Reliance Retail. What is the reason behind this? After all, why does Mukesh Ambani want to raise so much money for his company?

Recently, investment firm KKR has invested about $250 million in Reliance Retail. Earlier, Qatar's 'Qatar Investment Authority' (QIA) invested $ 1 billion in Reliance Retail last month. KKR has invested more than Rs 8 lakh crore at a company valuation, this valuation makes it among the top-10 companies with the highest market valuation in the country.

Reliance Retail has to raise $3.5 billion

Reliance Retail has set a target of raising a total amount of $3.5 billion. The company wants to complete it by the end of September. Singapore's GIC, Abu Dhabi Investment Authority and Saudi Arabia's Public Investment Fund already have investments in Reliance Retail. Now the company is in talks with all these existing investors to make more investments.

Reliance wants these three investors to deposit $500 million each in its retail business. For this, Reliance Industries has said that the valuation of its subsidiary Reliance Retail will be estimated at 100 billion dollars. Currently, these three investment funds hold 4.4 percent stake in Reliance Retail.

Has sold so much of the retail business

Reliance Retail had sold 10.09 percent stake of its business in the year 2020. In return, the company had received an amount of 56.4 billion dollars at that time. Both Singapore GIC and Abu Dhabi Investment Authority have currently invested $664 million in Reliance Retail. Whereas Saudi Arabia's PIF has invested $1.15 billion in the company.

After all, what is the reason for this?

When Mukesh Ambani sold his stake in Reliance Retail to these funds in 2020. Then there was a clause in those contracts to allow existing investors to increase their stake. All three funds are interested in increasing their stake in Reliance Retail. Mukesh Ambani's Reliance Retail is the largest retail company in the country. It runs about 18000 retail stores across the country. Its operations include brands ranging from grocery to electronics and jewellery. It competes with Flipkart backed by foreign retailers Amazon and Walmart in the country.

Reliance Retail has expanded its business rapidly across the country. Along with this, Reliance Retail is also continuously buying many new brands. The new investment will help it in its expansion and the company's debt burden of about Rs 71,000 crore.

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