Abu Dhabi Investment Authority (ADIA) is planning to invest $600 million in Indian billionaire Mukesh Ambani’s Reliance Retail Ventures Limited (RRVL), Economic Times reported, citing informed sources.

The investment will be at valuations almost 60% higher than in the earlier round three years ago.

The Abu Dhabi sovereign fund acquired a 1.2% stake for $751 million in Reliance Industries Limited's (RIL) retail subsidiary in October 2020, when the Bombay Stock Exchange-listed conglomerate raised $5.71 billion by selling a 10.09% stake in RRVL to a group of investors that included Saudi's Public Investment Fund, UAE's Mubadala and Singapore's GIC.

“This further cements the strategic relations between the two companies on the back of a strong government relationship between the two sovereigns,” the newspaper reported, citing an official on the condition of anonymity.

“ADIA is a major investor in Indian equities, infrastructure and financial services, but it is not often that it doubles down especially at such premium valuations,” the official added.

Earlier this month, RIL confirmed receiving $994.70 million from Qatar Investment Authority for around a 1% stake in its retail venture.

(Editing by Seban Scaria seban.scaria@lseg.com )