Jio Platforms set to raise Rs 5863.50 crore from Abu Dhabi Investment Authority by selling 1.16% equity stake
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This investment pegs Jio Platforms’ equity value at Rs 4.91 lakh crore and enterprise value at Rs 5.16 lakh crore and with this latest tranche , Reliance Industries stands to get Rs 97885.65 crore from eight deals deals in exchange for a 21.06 % stake.
ADIA follows Mubadala Investment Co., , the sister firm of the UAE’s largest sovereign wealth fund in its investments in Jio Platform. Last Friday, Mubadala’s investment of Rs 9,093.6 crore in Jio for 1.85% stake was announced. ET had reported about both the deals on June 2.
“I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities. This investment is a strong endorsement of our strategy and India’s potential,” said chairman and MD -Mukesh Ambani.
Agencies
ADIA is part of a consortium that has been engaged with Reliance for months to buy into its pan-India fibre network. It is also a rare case of both UAE funds scoping the same investment opportunity.
The funds coming from stake sales in Jio Platforms and the Rs 53,124 crore from a rights issue will help lower Reliance’s consolidated net debt by over 90% from Rs 1.61 lakh crore at the end of FY20. Reliance is now well placed to meet its zero net-debt target by March 2021, analysts said.
Before ADIA, other investors in Jio include -Facebook and private equity funds Vista Equity Partners, General Atlantic, KKR, two tranches from Silver Lake and then Mubadala.
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