Reliance Industries Limited has announced that private equity firm KKR will invest Rs 11,367 Cr in Jio Platforms. The investment is being made for a 2.32% stake in the company, and it’s worth pointing out that this is the fifth big-ticket deal announced by the conglomerate in the past month.
According to a RIL press release, this new transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is indeed a huge deal for the company, especially since all the investments have poured in within the last month.
In case you’re wondering, General Atlantic on 18 May said it will buy a 1.34% stake in Jio Platforms for Rs 6,598.38 crore. Before that, Vista Equity Partners picked up a 2.32% stake for Rs 11,367 crore.
Another big investment came from US private equity firm Silver Lake who invested Rs 5,655.75 crore in Jio Platforms for a 1.15% stake.
And last, but not least, we all know about the Facebook deal that kickstarted all this with an investment of $5.7 billion for a 9.99 per cent stake.
So, combining all the deals to date, Jio Platforms will get Rs 78,562 crore from the five investments.
KKR to invest ₹11,367 cr into Jio Platforms.
This transaction values Jio Platforms at an equity value of
₹4.91 lakh cr and an enterprise value of ₹ 5.16 lakh cr pic.twitter.com/r3zES8JWJt
— CNBC-TV18 (@CNBCTV18Live) May 22, 2020
In an official statement, Mukesh Ambani said, “I am delighted to welcome KKR, one of the world’s most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians. KKR shares our ambitious goal of building a premier Digital Society in India.”
The RIL unit mostly comprises of its telecom business under Reliance Jio Infocomm. Jio, in case you’re wondering, is now the largest telecom service provider in the country with over 388 million subscribers.
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