Fund will invest Rs 6,598.38 crore in Rising / Reliance Industries' Jio Platforms General Atlantic to take 1.34% stake
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RIL acquires Rs 67,194.75 crore fund by doing 4 deals in less than 4
weeks
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Mukesh Ambani has targeted to make Reliance Industries debt free by March
2021.
new Delhi. Reliance Industries on Sunday said it would sell 1.34 per cent stake of its digital entity to global equity company General Atlantic. Reliance Industries (RIL) will get Rs 6,598.38 crore from this deal. In less than four weeks, RIL has announced four deals to acquire investment. Reliance Industries said in a statement that these four deals would give it a fund of Rs 67,194.75 crore. This will help the company reduce its debt.
Jio platforms become 5.16 lakh crore rupees company
The company said in a statement that the equity value of Jio platforms has been estimated at Rs 4.91 lakh crore and enterprise value of Rs 5.16 lakh crore in this new investment. Post General Atlantic's investment, it will hold 1.34 per cent stake in Jio Platform. Jio Platforms operates Reliance Jio Infocomm, the country's newest and largest telecom company.
Facebook invested Rs 43,574 crore in Jio Platforms last month.
Earlier on April 22, Facebook had signed a deal to acquire 9.99% stake in Jio Platforms by investing Rs 43,574 crore. A few days later, the world's largest technology investor, Silver Lake, signed a deal to take a 1.15% stake in Jio Platforms by investing Rs 5,665.75 crore. On May 8, US-based company Vista Equity Partners bought 2.32 per cent stake in Jio Platforms with an investment of Rs 11,367 crore. Strategic and financial investors will hold a 20 per cent stake in Jio Platforms. Through these 4 deals, Reliance has sold a 14.8 per cent stake in Jio Platforms. More such investments may be announced in the near future.
Reliance Industries can become debt-free company by December this year
Mukesh Ambani, chairman and managing director of Reliance Industries, in August last year set a target of making RIL a debt-free company by March 2021 on a net basis. The debt reduction target is expected to be met in December this year by the Facebook deal, rights issue worth Rs 53,125 crore, private equity investment and stake sale to several more companies including Saudi Aramco.
Reliance Industries had net debt of Rs 1,61,035 crore in March
At the end of the March quarter, Reliance owed Rs 3,36,294 crore in debt. At that time the company had cash of Rs 1,75,259 crore. The net debt of the company was Rs 1,61,035 crore after adjusting the debt with cash. Out of the outstanding debt owed to the company, Rs 2,62,000 crore is on Reliance's balance sheet and Rs 23,000 crore is on Jio. Jio Platforms is a wholly subordinated subsidiary of Reliance Industries. It is a next generation technology company. Reliance Jio Infocomm is a fully subordinated subsidiary of Jio Platforms. Jio Infocom has 38.8 million subscribers.
General Atlantic has also invested in companies like Facebook and Alibaba
General Atlantic is the world's largest global growth equity company. She has been investing in companies in the technology, consumer, financial services and healthcare sectors for nearly 40 years. He has invested in a number of disruptive companies worldwide. Such companies include Airbnb, Alibaba, Ant Financial, Box, ByteDance, Facebook, Slack, Snapchat, Uber, among others. RIL CMD Mukesh Ambani said that I have known General Atlantic for many decades. I have been an admirer for his faith in India's development potential. We are excited to get Jio to benefit from General Atlantic's global expertise and 40 years of investment in technology companies.
Live is leading the digital revolution in India
General Atlantic CEO Bill Ford said that we agree with Mukesh's view that digital connectivity has the potential to accelerate the country's economy. General Atlantic has long been working with the founders to develop the disruptive business. Jio is also leading the digital revolution in India.
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