New investor in Jio Platforms
Reliance Industries Ltd (RIL) on Sunday announced yet another investment by an overseas entity in its digital services arm.
Abu Dhabi Investment Authority (ADIA) will invest Rs 5,683.50 crore in Jio Platforms. Like the other recent transactions, the investment values the RIL subsidiary at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.
ADIA’s investment will translate into a 1.16 per cent equity stake in Jio Platforms.
With this investment, which is the eighth in less than seven weeks, Jio Platforms has raised Rs 97,885.65 crore from leading global investors such as Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA. They will collectively hold more than 21 per cent in Jio Platforms.
Established in 1976, ADIA is a globally diversified institution that invests on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation. ADIA manages a global investment portfolio that is diversified across more than two dozen asset classes and sub-categories.
“I am delighted that ADIA, with its track record of more than four decades of long-term value investing across the world, is partnering Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities. This investment is a strong endorsement of our strategy and India’s potential,” Mukesh Ambani, chairman and managing director, RIL said while commenting on the transaction.
Sources close to RIL said the latest investment comes amid a global lockdown, signifying India’s digital potential and Jio’s business strategy. They added that the investment is another strong endorsement of Jio’s tech capabilities, disruptive business model and long-term growth potential and that it also reaffirms Jio’s continuing attraction among global investors for various strengths.
“Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socio-economic developments and the transformative effects of technology on the way people live and work,” Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA, said.
Morgan Stanley acted as the financial adviser to Reliance Industries. AZB & Partners and Davis Polk & Wardwell acted as the legal counsel.