Reliance Jio net debt plummets to ₹21,900 cr

Andrew Cummings
June 6, 2020

Abu Dhabi-based sovereign firm Mubadala has become the latest investor in Mukesh Ambani's Reliance Jio Platforms, joining five American firms, including Facebook and Silver Lake, that have secured stakes in India's biggest telecom operator at the height of a once-in-a-century global pandemic.

Reliance shares touched an all-time high of Rs 1,617.70 on the BSE Friday, before closing at nearly the same price.

May 8 - Vista Equity: The US-based private equity firm picked a 2.32 percent stake in RIL's Jio platforms for Rs 11,367 crore.

The company previously sold 9.99% to Facebook for Rs. 43,574 crore, 1.15% to Silver Lake for Rs. 5,655.75 crore, 2.32% to Vista Equity for Rs. 11,367 crore, 1.34% to General Atlantic for Rs. 6,598.38 crore, and 2.32% to KKR for Rs. 11,367 crore.

"Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala's work in diversifying and globally connecting the UAE's knowledge-based economy".

Reliance is expected to strike at least one more deal to dilute some portion of Jio Platforms, which is presently valued at $65 billion.

This takes Jio's valuation to an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, RIL said on Friday. "We look forward to benefitting from Mubadala's experience and insights from supporting growth journeys across the world".

"The investment momentum behind Jio validates a compelling business model and underscores our admiration for Mukesh Ambani, his team and their courageous vision in creating and building one of the world's most remarkable technology companies", said Egon Durban, Silver Lake Co-CEO, in a statement.

Abu Dhabi Investment Authority and Saudi Arabia's The Public Investment Fund are in discussions with Reliance Industries to invest in its digital arm, news agency Bloomberg reported this week citing people familiar with the matter. Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain. Now, the total amount raised by Jio Platforms, excluding the recently concluded rights issue, stands at Rs 92,201 crore.

Morgan Stanley served as a financial adviser to Reliance Industries, the company said in a statement.

Other reports by iNewsToday