After Qatar's move, another oil-rich Gulf sovereign fund, the Abu Dhabi Investment Authority (ADIA), is also interested in acquiring a greater stake in Mukesh Ambani's vast retail empire. Reports suggest that ADIA is looking to invest $600 million in Ambani's organized retail business, and the valuation for this investment would surpass the levels seen during a previous round three years ago.

ADIA is already an investor in Reliance Retail Ventures (RRVL). In October 2020, they acquired a 1.2% stake for Rs 5,512.50 crore ($751 million). This investment was part of a larger fundraising effort by RRVL, where they raised Rs 47,265 crore by selling a 10.09% stake. Notably, this stake sale attracted the interest of several prominent investors, including Saudi PIF, Mubadala, GIC of Singapore, Silverlake, TPG, and GA.

Among the investors from the previous group, KKR has made an additional investment. They have invested Rs 2,069.50 crore at a pre-money equity value of Rs 8.361 lakh crore ($100 billion). This significant investment has positioned RRVL as one of the top four companies in India in terms of implied market capitalization.

So far, Qatar's investment of $1 billion stands as the sole new infusion of funds in the ongoing round of fundraising. The present valuation represents an impressive 60% premium compared to the valuation from the previous financing round that occurred three years ago.

However, it's worth noting that this valuation still falls considerably below the estimates of most equity analysts who evaluate the worth of this privately held retail business. In May, analysts from AllianceBernstein suggested a valuation of $131 billion for Reliance Retail, which significantly surpasses the current valuation.

"This strengthens the strategic ties between the two companies, supported by a robust governmental relationship between the two sovereign entities," stated an anonymous official, emphasizing the confidential nature of the ongoing discussions.

ADIA is a significant investor in various sectors within India, including equities, infrastructure, and financial services. However, it is relatively uncommon for them to increase their investments to this extent, particularly in situations like the present one.

A noteworthy development unfolded as Reliance Industries took action in early July. They assessed the value of Reliance Retail Ventures Limited (RRVL) at $148 billion. This evaluation was made when Reliance Industries decided to acquire the holdings of minority shareholders and employee stock option holders, collectively amounting to 0.09% of RRVL.

The significant aspect of this valuation is that it represented a substantial 60% premium over the valuations established independently by two valuation experts: Ernst & Young Merchant Banking Services and BDO Valuation Advisory. These independent experts had valued RRVL at $93 billion and $97 billion, respectively.

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