Another mega investment in Jio; Mukesh Ambani’s RIL raises Rs 11,000 cr from Saudi Arabia fund

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Updated: Jun 18, 2020 5:11 PM

Mukesh Ambani led Reliance Industries has raised Rs 11,367 crore from The Public Investment Fund (PIF) for a 2.32% equity stake in Jio Platforms on a fully diluted basis.

Mukesh Ambani led RIL raises total investment of over Rs 1.04 lakh crore by selling a combined 22.28% equity stake in Jio PlatformsThe investment values Jio Platforms at an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore.

Mukesh Amabni led Reliance Industries has raised Rs 11,367 crore from The Public Investment Fund (PIF) for a 2.32% equity stake in Jio Platforms on a fully diluted basis. PIF, the sovereign wealth fund of Saudi Arabia, is the 10th cheque that Mukesh Ambani has received for an equity investment into his digital telecommunications arm Jio Platforms. The investment values Jio Platforms at an equity value of ₹ 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore. Including the latest investment Reliance Industries Ltd has now raised a total of Rs 1,15,693 crore from global investors including Mark Zuckerburg’s Facebook. 

Reliance Industries said that the investment will further assist Jio in building an inclusive technology growth platform for the Indian consumer. “This investment is in line with PIF’s strategy and mandate of investing in sectors and companies that generate long-term commercial returns to drive Saudi Arabia’s economic transformation as part of Vision 2030 objectives,” Reliance Industries said in a statement. PIF has made its largest investment into the Indian economy to-date.

Also read: Mukesh Ambani’s massive warchest; how RIL may use Jio stake sale money other than to cut debt

“We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms,” Mukesh Ambani said. The investment along with the 9 others that Reliance Industries has drawn since April this year are all subject to approval.

Among all the investors, Facebook has been the biggest. The US-based tech giant has purchased a 9.99% equity stake in Jio Platforms for Rs 43,574 crore. Other investors include Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, and L Catterton. According to Bloomberg, the Competition Commission of India (CCI) is currently reviewing Facebook’s purchase. The Rs 1.15 lakh crore raise so far is nothing short of a warchest that may be used by Mukesh Ambani not only to trim RIL’s net debt but also to explore opportunities that augment his already diverse business.

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