Now Abu Dhabi Investment Authority jumps onto Reliance Jio’s fundraising spree; puts Rs 5,683 crore

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Updated: Jun 07, 2020 8:26 PM

The latest investment takes the funding tally of Mukesh Ambani's Jio Platforms to Rs 97,885.65 crore in less than seven weeks from global backers including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala apart ADIA.

The deal valued Jio Platforms at an equity value of Rs 4.91 lakh crore.

Reliance Industries and its digital services arm Jio Platforms’ fundraising spree continue. The company has now raised Rs 5,683.50 crore by a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) in exchange for a 1.16 per cent equity stake on a fully diluted basis. The deal valued Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, according to a statement by Reliance. The latest investment takes Jio Platforms’ funding tally to Rs 97,885.65 crore in less than seven weeks from global backers including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala apart from ADIA.

“I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities,” said Mukesh Ambani, CMD, Reliance Industries in a statement. With the latest capital infusion, Reliance has sold 21.06 stake in Jio Platforms with Facebook acquiring the largest share of 9.99 per cent among all investors followed by 2.32 per cent share owned by Vista Equity Partners and KKR each and 1.85 per cent by Abu Dhabi-based sovereign investor Mubadala.

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The massive fundraising activity by Reliance would not just enable it to become a net zero-debt company ahead of March 2021 target but would also make it a digital giant along with refining and petrochemicals multinational. “Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socio-economic developments and the transformative effects of technology on the way people live and work,” said Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department, ADIA.

Jio Platforms currently has over 388 million subscribers and has been focusing on building digital ecosystem based on a host of new-age technologies such as cloud and edge computing, big data analytics, AI, IoT, AR/VR, blockchain etc. “Jio’s vision is to enable a Digital India for 1.3 billion people and businesses across the country, including small merchants, micro-businesses and farmers,” the company said.

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