US-Based Silver Lake, Co-Investors To Up Stake In Jio Platforms To 2.1%

Jio Platform has raised Rs 92,202.15 crore from technology investors within six weeks

Reliance Industries said late on Friday that US-based private equity firm Silver Lake and its co-investors will buy an additional 0.93 per cent stake in its digital arm, Jio Platforms, for Rs 4,546.80 crore. With this, the total investment by Silver Lake and its co-investors in Jio Platforms – which houses Reliance Industries’ telecoms arm Reliance Jio Infocomm – rose to Rs 10,202.55 crore, in addition to the Rs 5,656 crore which Silver Lake committed to Jio Platforms in May. The announcement of investment from the Silver Lake-led group of investors came hours after the conglomerate said Abu Dhabi-based sovereign investor Mubadala Investment Company (Mubadala) will take a 1.85 per cent equity stake in Jio Platforms for Rs 9,093.60 crore.

Here are 10 things to know about this big story:

  1. The fresh investment by Silver Lake and others values Jio Platforms at an enterprise value of Rs 5.16 lakh crore, Reliance Industries said.

  2. With this investment, Jio Platform has raised Rs 92,202.15 crore from technology investors – including US-based Facebook, Vista Equity Partners and General Atlantic – within six weeks.

  3. Reliance Industries had on May 4 announced an investment of Rs 5,655.75 crore by Silver Lake for an 1.15 per cent stake in its digital arm, Jio Platforms.

  4. With the fresh infusion of Rs 4,546.80 crore, Silver Lake and its co-investors will own a total 2.08 per cent stake in Jio Platforms, according to Reliance Industries. The transaction is subject to regulatory and other customary approvals, the conglomerate added.

  5. “I would like to emphasise that Silver Lake’s additional investment in Jio Platforms, within a span of five weeks during the COVID-19 pandemic, is a strong endorsement of the intrinsic resilience of the Indian economy, which will surely grow bigger with comprehensive digital enablement,” said Mukesh Ambani, chairman and managing director, Reliance Industries.

  6. Earlier on Friday, Reliance Industries had announced that Abu Dhabi’s Mubadala will take a 1.85 per cent equity stake in Jio Platforms for Rs 9,093.60 crore – the Abu Dhabi-based sovereign investor’s largest investment in an Indian firm.

  7. The deals will help Reliance Industries meet Mr Ambani’s target of eliminating net debt by the end of the financial year.

  8. Reliance Industries shares clocked a fresh record high on Friday before giving up all of its intraday gains to close nearly unchanged for the day at Rs 1,580.60 apiece on the BSE. The benchmark S&P BSE Sensex index rose 0.90 per cent, continuing its surge after a day’s pause. 

  9. Reliance Industries is also in discussions with Abu Dhabi Investment Authority and Saudi Arabia’s The Public Investment Fund, news agency Bloomberg reported this week citing people familiar with the matter.

  10. Reliance Jio Infocomm – which started in 2016 – has already decimated several rivals with cut-throat pricing and is counting on Reliance Industries’ retail network to expand into e-commerce. It provides telecom and digital services under brand Jio, and a connectivity platform to more than 38.8 crore subscribers.

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