Mukesh Ambani's Reliance Retail in talks to raise $2.5 billion

Mukesh Ambani's Reliance Retail Ventures is in advanced talks with global investors to raise around $2.5 billion by September end, ahead of a potential stock market listing, said Reuters, citing sources.

Sources said that the target fund raise of $2.5 billion is part of a combined $3.5 billion target the firm has set for itself, a part of which - $1 billion - came from Qatar Investment Authority (QIA) and was announced last month

Reliance, via an emailed statement, said "As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis."

The oil-to-telecom conglomerate said it raised $1 billion from QIA at a $100 billion valuation, last month, for Reliance Retail whose operations stretch from selling groceries to electronics, and include foreign partnerships with brands like Burberry and Pret A Manger.

Morgan Stanley is advising Reliance on the process, sources added. However, Morgan Stanley did not respond to a request for comment.

Sources declined to name potential investors. But one source said Reliance was talking to at least two US-based investors, while the other sources said there was growing interest from existing foreign investors of Reliance, including some sovereign wealth funds.

The investment, if it materialises, will bolster India's status as a rare bright spot for Western private investors who are shying away from new investments in China due to the country's worsening economic outlook and geopolitical tensions.

In 2020, Reliance Retail raised $5.71 billion by selling a 10.09 per cent stake to investors including KKR, the Saudi Public Investment Fund, General Atlantic and the United Arab Emirates' Mubadala.

(With inputs from Reuters)