Reliance Retail gets Rs 4,967-cr boost from Abu Dhabi Investment arm; RIL trades down

Reliance Industries (RIL) shares went in focus on October 9 after an Abu Dhabi Investment Authority (ADIA) subsidiary invested Rs 4,966.80 crore in Reliance Retail Ventures Ltd (RRVL). This investment will translate into an equity stake of 0.59 percent in RRVL on a fully diluted basis.

RIL shares were trading 0.75 percent lower at Rs 2,297 at 9:20am.

This latest investment from ADIA values Reliance Retail at a pre-money equity value of Rs 8.381 lakh crore. The transaction is subject to customary approvals. Morgan Stanley acted as financial advisor to RRVL, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell acted as legal counsels.

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The investment comes as Mukesh Ambani-led Reliance set an internal target to raise $3.5 billion. RRVL recently attracted investments from private equity firm KKR & Co and Qatar Investment Authority (QIA).

According to earlier reports, Reliance Retail was in talks with existing investors, including sovereign wealth funds of Singapore, Abu Dhabi and Saudi Arabia, for a combined investment of around $1.5 billion.

Ambani had said in August that “several marquee global strategic and financial investors have shown strong interest” in his company.

In the previous session, shares of Reliance Industries, the parent company of Reliance Retail Ventures Ltd, closed marginally higher at Rs 2,317.65 on NSE. So far in 2023, the stocks has fallen over 10 percent.

RIL share performance, technicals

Reliance Industries has fallen over 3 percent in the last one year, underperforming the benchmark Nifty 50. Technicals show that the relative strength index (RSI) of RIL stock stands at 32, implying that it’s trading neither in the overbought nor in the oversold territory. Its one-year beta is 1.22, implying very high volatility. The counter is trading below its 20-day averages, 50-day, 100-day and 200-day moving averages.

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