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Indian billionaire Mukesh Ambani's Reliance Industries is planning to raise Rs 60,000 - 63,000 crore ($8.5 billion) from private equity investors and sovereign wealth funds by selling a 15 percent stake in Reliance Retail Ventures, the holding company of its retail businesses.
According to Financial Times (FT), sovereign wealth funds such as Abu Dhabi Investment Authority (ADIA) and Saudi Arabia's Public Investment Fund (PIF), are in talks to buy stakes in Reliance Retail Ventures.
ADIA is in discussions to invest about $750 million at a valuation of roughly $57 billion, while PIF could funnel as much as $1.5 billion into Reliance Retail, the FT said, citing people familiar with the matter.
Abu Dhabi investment firm Mubadala may also take a stake, the report said. However, the wealth funds declined to comment.
US-based private equity firm Silver Lake Partners has already picked up a 1.75 percent equity stake in Reliance Retail for $1 billion. Private equity giant KKR is also in talks with the company to pump in around $1.5 billion, and a formal announcement could come before the end of the month, various reports have said.
Fresh shares will be issued to investors, and the company expects to complete the fundraising by end of October, India's leading financial newspaper, Economic Times, reported today, citing a person familiar with the development.
Amazon and Walmart have been mentioned as potential suitors, but no talks had been held with them, Economic Times reported.
This year, Reliance has raised $20 billion from global investors, including Facebook Inc, by selling stakes in its Jio Platforms digital business.
(Writing by Seban Scaria; editing by Daniel Luiz)
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