Reliance Industries on Friday announced a $1.5 billion (Rs. 11,367 crores) stake sale in its digital unit Jio Platforms, a third deal in little over two weeks that will inject a combined $8 billion (Rs. 60,596.37 crores) in the telecoms-to-energy group to help it pare debt. Private equity firm Vista Equity Partners is buying a 2.32 percent stake in Jio Platforms, the unit that houses Reliance’s telecoms venture Jio Infocomm, for Rs. 11,367 crores, Mumbai-headquartered Reliance said in a statement.

The investment gives Jio Platforms an equity value of Rs. 4.91 lakh crores and an enterprise value of Rs. 5.16 lakh crores, said Reliance, which is controlled by billionaire tycoon Mukesh Ambani.

The deal comes after Reliance cut a $5.7 billion (Rs. 43,574 crores) deal with Facebook for a 9.99 percent stake in Jio Platforms on April 22, and just days after it secured a $750 million (Rs. 5,656 crores) investment from private equity firm Silver Lake.

The deals, along with its plan to sell $7 billion (roughly Rs. 52,880 crores) in new shares, will help Reliance meet its target of eliminating $21.4 billion (roughly Rs. 1.62 lakh crores) of net debt by the end of the year.

The negotiations between Reliance and Vista were built off of personal connections made between the private equity firm’s founder Robert Smith and Ambani, a person familiar with the matter said.

The discussions were led by Ambani’s close aide Manoj Modi and Brian Sheth, co-founder of Vista who is half-Indian and whose father hails from Ambani’s home state of Gujarat, the source added.

Unlike traditional mobile carriers which depend on voice services to make money, Ambani has pitched Jio as a trailblazer tech company by offering cheap mobile data plans that helped hundreds of millions of Indians use the Internet for the first time.

Ambani is set to roll out a new retail venture, which combined with Jio and interests in education, music and films, could pose a challenge to established e-commerce firms such as Amazon and Walmart’s Flipkart.

Reliance last month reported a 39 percent decline in March quarter profit, hit by a sharp fall in oil prices and lower fuel demand.

Vista Equity has more than $57 billion (roughly Rs. 4.30 lakh crores) in capital commitments and has invested in companies across sectors including media and entertainment, healthcare and real estate.

© Thomson Reuters 2020