Jio Platforms Gets Over Rs 67,000 Crore Investment in Less Than a Month: Here Are All the Deals by Reliance

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posted on 4 years ago — updated on 1 second ago

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The deals underscore the strength of a digital business built over the past four years in an effort to diversify Reliance away from petrochemicals and refining.

Reliance Industries on Sunday announced US fund General Atlantic will invest Rs 6,598 crore in Jio Platforms, a fourth deal that takes investment in its digital unit to over Rs 67,194 crore in less than a month.

General Atlantic will pick up a 1.34% stake in Jio Platforms which includes movie, music apps as wells telecoms venture Jio Infocomm. The deal puts Jio Platform's equity value at Rs 4.91 lakh crore and gives it an enterprise value of Rs 5.16 lakh crore, Reliance said in a statement.

The deals, along with Reliance's plan to sell $7 billion in new shares, will help the Mumbai-based oil-to-telecoms giant meet its target of eliminating $21.4 billion in net debt this year. They also underscore the strength of a digital business built over the past four years in an effort to diversify Reliance away from petrochemicals and refining.

Here are the other deals Reliance Jio has struck in recent days:

Jio-Facebook

Facebook bought a 9.9 percent stake in Reliance Jio for $5.7 billion (Rs 43,574 crore) in a deal that gives the social media giant a firm foothold in a fast-growing market and helps the Indian oil-to-telecom conglomerate to significantly cut debt.

The deal valued Jio at Rs 4.62 lakh crore ($65.95 billion). It was Facebook’s biggest deal since its $22 billion buyout of WhatsApp in 2014.

Jio-Silver Lake:

American private equity giant Silver Lake Partners bought 1 percent stake in Jio Platforms for Rs 5,655.75 crore ($750 million) in a deal that took Jio's enterprise value to Rs 5.15 lakh crore — a 12.5 premium to the value indicated by Facebook. Jio-Silver Lake deal came less than two weeks after the Facebook deal.

Jio-Vista Equity

Vista Equity Partners, a US-based private equity firm that runs the world’s largest exclusively tech-focused fund, picked up a 2.32 percent stake in Jio Platforms for Rs 11,367 crore, making it the third high-profile investment in the Reliance Industries Ltd (RIL) unit in as many weeks and underlining its status as a next-generation software and platform company.

This investment valued Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. Vista’s investment, which is the largest investor in Jio Platforms behind RIL and Facebook, is at a 12.5 percent premium over the deal with the social media network announced in April.