Jio to receive investment of Rs.6,600 crore for 1.34% stake
General Atlantic, an US investment firm, will invest Rs.6,600 crore in Jio Platforms for 1.34% stake.
This investment values the company at an equity value of Rs. 4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore.
Chairman and MD of Reliance Industries, Mukesh Ambani, said that he is thrilled to welcome the global investor. The investor shares the same vision of a digital society for India and in the transformative power of digitization in enriching lives. Director of Reliance Jio, Akash Ambani, also declared his happiness at this.
CEO of General Atlantic, Bill Ford, said that they are excited about investing in Jio. They, like Ambani, believe that digital connectivity has the potential to accelerate Indian economy.
Facebook shall also pay $5.7 billion for a 10% stake in the digital unit, while Silver Lake Partners and Vista Equity Partners are to invest $2.25 billion.
Investors are relying on Jio’s access to India’s huge consumer market- from retail to education to payments. India is the only major open Internet market where technology giants like Amazon.com.Inc., Walmart Inc., Alphabet Inc. can compete for market share.
These investments will help in slashing debt at RI and will also help set a valuation for Jio, which till now was primarily owned by RI only.
The deals combined with its plan to sell $7 billion in new shares will help RI meet its plan to eliminate $21.4 billion of net debt by 2020 end. Saudi Arabia’s Public Investment Fund might also buy a minority stake in Jio as told by Bloomberg recently.