US-based tech giant Google is set to buy stake in Reliance Jio for over Rs 33,700 crore after RIL's telecom announced multiple deals with global partners in the last few weeks.
US-based tech giant Google is set to buy stake in Reliance Jio for over Rs 33,700 crore after RIL’s telecom announced multiple deals with global partners in the last few weeks. Under the latest partnership, Google will buy 7.7% equity stake in Reliance Industries Ltd’s four-year-old, RIL chairman Mukesh Ambani said at the company’s 43rd Annual General Meeting. Jio has already secured funding from many global investors such as Mubadala, KKR, etc. “Target is now complete, now looking only for strategic partners in the business,” Mukesh Ambani said.
What is Google deal about?
Jio and Google will together make a new affordable 4G smartphone, with India-specific Android-based operating system, the companies announced on Wednesday. The operating system can power a value-engineered, entry-level 4G/5G smartphone. The Jio-Google partnership is determined to make India 2G-mukt, Mukesh Ambani said at the virtual event.
“The pace and scale of digital transformation in India is hugely inspiring for us and reinforces our view that building products for India first helps us build better products for users everywhere,” Sundar Pichai, CEO, Google and Alphabet, said during the event.
Reliance Jio has so far raised Rs 1,18,318 crore, excluding Google’s share, with Facebook getting the biggest slice of Jio pie at 9.99% stake. Facebook alone has invested Rs 43,573 crore in the RIL telecom arm. Including Google, total 13 other companies have partnered with India’s biggest network.
Reliance Jio has been on a spree in the past few weeks with the RIL’s telecom arm securing investments from multiple global companies including Facebook. Since then, RIL has become the first Indian company to cross 12-million m-cap. Thanks to the multiple deals in last few weeks, Reliance has also delivered on its earlier promise that the company will become a net debt free firm well before its schedule of March 31, 2021. Mukesh Ambani has so far sold over 25% stake in Jio Platforms, and raised funds with the rights issue of Rs 53,124 crore and stake sale to British energy giant BP in the petro-retail joint venture.