Reliance Industries the parent company of Reliance Retail has yesterday announced that the Public Investment Fund of Saudi Arabia is going to invest Rs.9555 Crores in Reliance Retail for 2.01% stakes. With this new investment, Reliance Retail is currently valued at 4.58 Lakh Crores.
This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market
segment. The investment in RRVL follows PIF’s earlier acquisition of a 2.32% stake in Jio Platforms, the digital services subsidiary of Reliance Industries.
PIF manages a $350 billion fund and has already invested in the companies such as Tesla, Uber, Disney, Softbank Vision Fund, Blackstone etc.
With this latest investment of PIF, Reliance Retail to date has raised ~47000 Crores and JIO has raised ~1.5 Lakh Crores. So, in total Reliance Industries has raised ~2 Lakh Crores of FDI.
How big this FDI is?
In 2019-20, India has received a ~50 Billion dollar or ~3.5 Lakh Crores of FDI. So, Reliance Industries alone in the first 8 months of FY20-21 has got 58% of last year's FDI. More FDI means more dollar will come to India and when we sell dollar in the currency market to convert into rupee, the demand for rupee appreciates. This will strengthen the rupee. This is good for imports but bad for exports. If you see the chart of dollar and rupee, you will find that this year, the dollar has made a peak of 77.38 in April and now at 74.36. So It has declined ~4% in the last 8 months. Thanks to the mota Bhai FDI raising spree which is helping the economy.