Reliance Industries on Friday announced the sale of 1.85 per cent stake in its digital unit to Abu Dhabi-based sovereign investor Mubadala for Rs 90.93 billion ($1.2 billion), the sixth deal in as many weeks.
The deal places an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion for Jio Platforms.
With this investment, Jio Platforms has raised Rs 876.55 billion from leading global technology and growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR and Mubadala in less than six weeks.
Facebook picked up 9.99 per cent stake in the firm that houses India’s youngest but largest telecom firm on April 22 for Rs 435.74 billion. Within days of that deal, Silver Lake – the world’s largest tech investor – bought a 1.15 per cent stake in Jio Platforms for Rs 56.65 billion.
On May 8, US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms for Rs 113.67 billion. On May 17, global equity firm General Atlantic picked up 1.34 per cent stake in Jio Platforms for Rs 65.98 billion.
This was followed by US private equity giant KKR buying 2.32 per cent for Rs 113.67 billion.
Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd, is a next-generation technology company. Reliance Jio Infocomm Ltd, with 388 million mobile subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said Mubadala is one of the most astute and transformational global growth investors.
“Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy. We look forward to benefitting from Mubadala’s experience and insights from supporting growth journeys across the world,” he said.
Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: “We are committed to investing in, and actively working with, high growth companies which are pioneering technologies to address critical challenges and unlock new opportunities.”
“We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India’s digital growth journey. With Jio’s network of investors and partners, we believe that the platform company will further the development of the digital economy.”
Ambani, 63, had in August last year set a target of March 2021, to make his conglomerate net debt-free. But thanks to the Facebook deal, a Rs 531.25 billion rights issue, private equity investments, and more stake sale to companies such as Saudi Aramco, the target is likely to be achieved by December.
