Reliance Retail In Talks With Singapore, Gulf Funds For Investments Worth $1.5 Billion: Sources

In a major development, Reliance Retail is reportedly in talks with existing investors that include sovereign wealth funds of Singapore, Abu Dhabi and Saudi Arabia for combined latest investment of approximately $1.5 billion, as per three sources with direct knowledge of the plan.

Reliance Retail is India's largest retailer and is led by Asia's richest person Mukesh Ambani. The talks with investors are part of an internal target to raise $3.5 billion which the company wants to close by the end September, Reuters has reported. Of that, QIA last month announced a $1 billion investment and KKR & Co (KKR.N) this week $250 million.

Singapore's GIC, the Abu Dhabi Investment Authority (ADIA) and Saudi Arabia's Public Investment Fund (PIF) are looking to invest at least $500 million each in Reliance Retail at a valuation of $100 billion, one of the sources told Reuters.

GIC, ADIA refused to comment, while PIF did not respond to Reuters requests for comment. Reliance said: "we do not comment on media speculation and rumours".

A second source said some of the three investors could end up putting in less than $500 million, and talks were also on with at least one or two further investors for the fund raising.

"All the three investors have evaluated the company quite seriously," said the first of the three sources, all of whom declined to be named as the discussions are private, added the Reuters report.

The final investments or funding plans could still change.