According to a report on Aug 25, Mukesh Ambani's Reliance Industries may sell another 8-10% stake in its Reliance Retail Ventures Ltd (RRVL) to fund expansion, retire debt, and prepare for its stock debut.

The stake sale will likely occur in tranches over 12-15 months and will be critical for the holding company's proposed IPO of Reliance's retail operations.

The stake sale plan comes just one day after Qatar Investment Authority (QIA) announced a Rs 8,278 crore ($997 million) investment at an equity valuation of Rs 8.2 lakh crore. The investment proposal represents Qatar's sovereign wealth fund's single largest investment in India.

The stake sale is critical at this stage because, at its current valuation of Rs 8.25 lakh crore, RRVL's IPO size will be massive and potentially unmanageable, according to the report.

As a result, the company believes that another 7-10% equity dilution will make the IPO size manageable and ensure its success, according to company sources quoted in the report.

According to Sebi's listing rules, a company's public shareholding, including those held by financial investors, must be at least 25%. Global investors, including QIA, currently own approximately 11% of RRVL. The QIA investment of Rs 8,278 crore is for a 0.99 per cent stake.