Reliance Industries on Sunday said it sold a 1.16 percent stake in its digital entity to Abu Dhabi Investment Authority (ADIA) for Rs 5,683.50 crore, bringing the cumulative fund to Rs 97,885.65 crore, which is lending to the oil-to-telecom group Will help.
“This investment gives the Jio platform an equity value of Rs 4.91 lakh crore and enterprise value of Rs 5.16 lakh crore.
“The investment of ADIA will be converted into a 1.16 per cent equity stake in the Jio platform,” the company said in a statement.
With this investment, Jio Platforms has raised Rs 97,885.65 crore in less than seven weeks, including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA.
The ADIA deal comes within days of Abu Dhabi Sovereign Wealth Fund Mubadala’s investment. Private equity fund Silver Lake invested 4,546.80 crore for an additional 0.93 percent on Jio platforms on June 5 for Rs 9,093.60 crore. Stake in Jio platforms.
With these investments, Reliance has sold all of the 21 per cent equity targeted in Jio platforms ahead of a potential IPO.
Jio Platforms, a wholly owned subsidiary of Reliance Industries Ltd, is a next generation technology company. Reliance Jio Infocomm Ltd will remain a wholly owned subsidiary of Jio Platforms with 388 million mobile subscribers.
The deal follows Facebook on April 22 to take a 9.99 percent stake in India’s youngest but largest telecom firm making Rs 43,574 crore. Within days of that deal, Silver Lake – the world’s largest tech investor – bought a 1.15 percent stake in Jio platforms for Rs 5,665.75 crore on May 4.
On May 8, US-based Vista Equity Partners bought a 2.32 percent stake in Jio platforms for Rs 11,367 crore. On May 17, global equity firm General Atlantic took a 1.34 percent stake in Jio Platforms for Rs 6,598.38 crore. After this, American private equity giant KKR bought 2.32 percent for Rs 11,367 crore.
On June 5, Silver Lake made additional investments to increase its stake to 2.08 per cent.
Established in 1976, ADIA is a globally diversified investment institution that makes sincere investments on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation. It manages a global investment portfolio diversified into more than two dozen asset classes and sub-categories.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am delighted that ADIA, with a track record of over four decades of long-term worldwide investment success, is partnering in its mission with Jio Platforms Is India creates opportunities for digital leadership and inclusive growth. This investment is a strong support to our strategy and India’s potential.
The transaction is subject to regulatory and other customary approvals.
“Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socio-economic development and the transformational effects of technology on how people live and work.
“The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track of strategic execution. Our investment in Jio is part of ADIA’s deep regional and attracting ability There is another performance. Sector expertise to invest globally with market leading companies and proven partners, “said Hamad Shahwan Aldhari, executive director of the private equity division at ADIA.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners, and Davis Polk and Wardwell acted as legal advisors.
Ambani, the 63-year-old chairman and managing director of Reliance, set a target in March 2021 to make its group debt-free in August last year. But thanks to the Facebook deal, a Rs 53,125 crore rights issue, private equity investment and more stake sales to companies such as Saudi Aramco, the target is likely to be achieved by December.
At the end of the March quarter, Reliance had outstanding debt of Rs 3,36,294 crore and cash of Rs 1,75,259 crore. After adjusting for cash, net debt came to Rs 1,61,035 crore.
Of the outstanding debt, Rs 2,62,000 crore is on Reliance’s books and Rs 23,000 crore on Jio.