Reliance Industries Ltd (RIL) on Friday announced that Intel Capital will invest Rs 1,894.50 crore in its digital services arm — Jio Platforms — the 12th such investment in the company in the last 11 weeks.
Intel Capital’s investment will translate into a 0.39 per cent equity stake in Jio Platforms Ltd.
So far, the RIL subsidiary has raised Rs 1,17,588.45 crore from marquee investors that include Facebook, Silver Lake, General Atlantic, KKR and Mubadala. Their combined investment now stands at 25.09 per cent.
Analysts had expected the stake of the foreign investors in Jio Platforms to not cross 25 per cent.
The Intel investment has breached this limit and expectations are now growing of more funds from top-notch investors.
The latest transaction by the investment arm of the semi-conductor giant translates to an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore for Jio Platforms.
The announcement led to the shares of Reliance ending with gains of 1.53 per cent, or Rs 26.95, at Rs 1,787.50 on the BSE.
“We are delighted to deepen our ties with technology leaders. Intel is a true industry leader, working towards creating world-changing technology and innovations. Intel Capital has an outstanding record of being a valuable partner for leading tech companies globally,” Mukesh Ambani, chairman and managing director of RIL, said.
Jio Platforms, a wholly owned subsidiary of RIL, provides digital services across India, with more than 388 million subscribers.
Intel Capital invests globally in innovative companies with a focus on technology areas such as cloud computing, artificial intelligence and 5G — opportunities where Jio is also investing for growth.”
Morgan Stanley acted as the financial adviser to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as the legal counsels.