Reliance Industries Ltd (RIL) has said that it has sold 0.93 percent stake in global digital asset company TPG for Rs 4,546.80 crore to its digital entity Jio Platforms. This is the ninth major investment in Jio platforms in the last eight weeks. So far, investment of more than 1.02 lakh crore rupees has been received in Jio platforms.
Reliance Industries, led by the country’s wealthiest industrialist Mukesh Ambani, gave this information in a statement on Saturday. It said that TPG will now invest Rs 4,546.80 crore in Jio platforms. In this deal, the share valuation of Jio Platforms is valued at Rs 4.91 lakh crore and the enterprise valuation is Rs 5.16 lakh crore.
Reliance Industries said TPG would hold a 0.93 percent stake in Jio Platforms accordingly. He said that with this investment, Jio Platforms raised Rs 102,432.45 crore from top global technology investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, Abu Dhabi Investment Authority and TPG from 22 April 2020 till now. have taken. Facebook first bought a 9.99 percent stake in Jio Platforms for Rs 43,574 crore on 22 April. A few days after the deal, Silver Lake, the world’s largest technology investor, bought a 1.15 percent stake in Jio Platforms for Rs 5,665.75 crore.
Subsequently, US-based Vista Equity Partners bought a 2.32 percent stake in Jio Platforms for Rs 11,367 crore on May 8. Global equity firm General Atlantic acquired a 1.34 percent stake in the company on May 17 for Rs 6,598.38 crore. Subsequently, an American equity investor, KKR bought a 2.32 percent stake for Rs 11,367 crore. Then on June 5, Abu Dhabi’s Savren Property Fund Mubadala and private investment company Silver Lake also invested. Mubadala invested Rs 9,093.60 crore for a 1.85 percent stake in Jio Platforms, while Silverlake made a fresh investment of Rs 4,546.80 crore for an additional 0.93 percent stake in Jio Platforms.
With this, the total investment by Silver Lake in Jio platforms is Rs 10,202.55 crore and the total stake is 2.08 percent. The Abu Dhabi Investment Authority (AIDA) invested Rs 5,683.50 crore for a 1.16 percent stake in Jio Platforms. With this deal, Reliance Industries has sold about 22 percent stake in Jio Platforms before a possible initial public offering (IPO).
TPG is a leading global alternative asset company, founded in 1992 with assets of over $ 79 billion. Which includes private equity, growth equity, real estate, and public equity. TPG has built an extensive network of hundreds of portfolio companies worldwide over 25 years of history. Its investments in global technology companies include Air BNB, Uber and Spotify, etc.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries said, “I am delighted to welcome TPG as an important partner today.” This will be part of our continued efforts to digitally empower the lives of Indians through a digital ecology. We are impressed by TPG’s track record of investing in global technology businesses, working with hundreds of millions of consumers and small businesses, and building a better society.
TPG co-CEO (Co-CEO) Jim Colter said, “We are excited to partner with Reliance to invest in Jio as Jio is transforming India’s digital economy.” Jio Platforms, a wholly-owned subsidiary of Reliance Industries Limited, is a technology company. Reliance Jio Infocomm Limited, which has 388 million mobile subscribers, will remain a wholly-owned subsidiary of Jio Platforms.
India’s richest businessman Mukesh Ambani (63) set a target of making his company Reliance Industries debt-free before March 2021 in August last year. Due to these investment deals in Jio platforms and the rights issue of Rs 53,125 crore, Ambani’s target seems to be fulfilled well ahead of time. It is estimated that by December this year, Reliance Industries will be debt-free.
At the end of the March quarter, Reliance Industries had arrears of Rs 3,36,294 crore, while it had cash of Rs 1,75,259 crore. Thus, the company’s net lending was Rs 1,61,035 crore. The company has raised about Rs 1.55 lakh crore from these investment deals in Jio platforms and the recent rights issue.