Reliance Jio has been raising funds in a series of investments for the past six weeks consecutively now. The latest addition comes on the 5th of June 2020 as the telecom giant raises funds from Abu Dhabi-based, Mubadala Investment Company, and additional capital from American private equity firm, Silver Lake Partners.
Jio platforms limited which is backed by Asia’s richest man, Mukesh Ambani, and is a subsidiary of Reliance Industries Limited, deals in providing digital services within India. The company was established in the year 2019 and India’s largest telecom service provider Reliance Jio Infocomm Limited forms a part of this company. The company also provides an array of digital services including mobile broadband, Jiofiber, smartphones, cloud services, and music services.
Jio has been raising funds for the previous weeks as it is subdued by a debt burden of $44.4 billion. Speaking on this heavy debt burden, Reliance’s Chairman and Managing Director, Mukesh Ambani has expressed his resilience in bringing down Reliance’s net debt to nil by the year 2021.
Let’s have a look into the investments that the telecom giant has raised under Mota Bhai’s captaincy over the past six weeks.
The series of fundraising began with the signing of a deal between Silicon Valley’s, tech giant, Facebook, and JIO on the 22nd of April 2020.
The telecom operator swapped 10% of equity for $5.7 billion which translates to Rs 43,574 crore in Indian currency. This will pave the way for the entry of the social networking operator in India’s digital manner in a more comprehensive manner encompassing diversifies sectors.
This is Facebook’s largest investment since 2014 when it placed its chip on the WhatsApp messenger.
This deal is also the largest in transactional value until now in the list that follows.
Jio-Silver Lake deal:
This US private equity firm was among the four equity firms that invested in this platform following the Facebook deal.
The firm gathered 1.34 percent stake for $748 million (5655.75 crores)
Vista Equity partners picked up 2.32 percent stake for $1.5 billion (Rs 11,367 crores)
Private Equity firm, General Atlantic swapped another 1.34 percent stake for $870 million (Rs 6598.38 crores)
In a similar fashion, to the deal made by Vista Equity Partners, KKR acquired a 2.32 percent stake for $1.5 billion (Rs 11,367 crores).
Abu Dubai’s sovereign investor, Mubadala Investment Company has announced a deal with the operator planning to pump in $65 billion (Rs 9093.60 crores) which makes the conglomerate equity value at Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.
Jio-Silver Lake deal (2nd deal):
The equity firm would be channelizing an additional Rs 4,546.8 crore in Jio Platforms for 0.93 percent stake.