Reliance Jio has been on a deal spree of late with the company having investors from across the globe to invest in Jio. There has been in a total of eight deals in six weeks which has led Mr. Mukesh Ambani to sell off 21.06% of the total stake which has helped RIL pare off half of its net debt of Rs. 1.61LCr.
1. Facebook-Jio deal
Reliance Jio has sold a 9.99% stake to Facebook for Rs. 43,574Cr, a deal which values the Indian company at a pre-money enterprise valuation of $65 billion.
Facebook is now the parent company of Reliance Jio Infocomm (Jio mobile) and of apps such as JioChat, JioSaavn, JioCloud, etc.
Jio and Whatsapp will remain independent organizations with their own business models but Jio Platforms contemplates to onboard around 30 million small kirana stores on its digital platform.
However, Jio Platforms, Whatsapp, and Reliance retail have signed a commercial pact to cross leverage e-commerce platforms, JioMart and Whatsapp to grow both businesses.
2. Silver Lake-Jio deal
Private equity firm Silver Lake invested Rs. 5655.75Cr for a 1.15% stake in Jio platforms. This is the second deal for Jio after partnering with Facebook. The Silver Lake deal assessed Jio Platforms at an equity value of Rs 4.9LCr, an enterprise value of Rs 5.15LCr, and represents a 12.5% premium to the equity valuation of the Facebook investment.
According to Moody’s, this deal was credit-positive as it enhanced RIL’s already strong financial flexibility which included the recently announced rights issue ($7 billion) and investments by Facebook.
3. Jio-Vista deal
Vista equity partners have invested Rs.11,367Cr in Jio platforms for a 2.32% stake. According to Reliance industries “This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.”
This is Vista’s first sizeable investment in India and it is the second-largest investor in RIL after Facebook.
The main motive of Vista is to deliver exponential growth in connectivity across the country, providing enterprise software, modern consumer and small business to fuel the future of RIL, one of the world’s fastest-growing digital economies.
4. General Atlantic- Jio Deal
General Atlantic invested Rs.6598.38Cr in Reliance Jio for a stake of 1.34%.
General Atlantic is a leading global growth equity firm with a record of 40 years of investment in Consumer, Technology, Financial, and Health care sectors.
It has investments across 14 locations, working behind themes that are driven by innovation, entrepreneurship and supported by long term secular growth, so, RIL and General Atlantic, both of them share a vision of digital society for India and strongly believe in the transformative power of digitization in enriching all the Indians.
5. KKR-Jio Deal
Private equity firm KKR has invested ?11,367 crore
in Jio Platforms to receive a 2.32% equity stake in return.
According to KKR, this deal is its largest investment in Asia.
KKR believes that Jio Platforms is a true home-grown next-generation technology leader in India and has the potential to transform India’s digital ecosystem and together they share the ambitious goal of building a premier digital society in India.
With KKR jumping into the Jio Platforms bandwagon,
the total amount invested into Jio is Rs.78,562Cr in just over five weeks.
6. Mubadala-Jio Deal
Abu Dhabi’s Mubadala has bought a 1.8% stake of Jio worth Rs. 9094Cr.
Mubadala has a portfolio of $229bn with bets in tech, energy, aerospace, healthcare, mining, and real estate.
Mubadala’s investment values the company at around $65bn which is similar to the company’s previous deals. Analysts say that Ambani’s ultimate goal is to build the next global technology company that will hold rank alongside the likes of Google, Tencent, Amazon, and Alibaba.
With this investment, Jio Platforms has raised Rs 87,655.35Cr from leading global technology and growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, and Mubadala in less than six weeks.
7. Silver Lake-Jio (Additional) Deal
Silver lake invested an additional Rs. 4745Cr in Jio Platforms which leads to an aggregate investment of Rs.10,202.5Cr for 20.08% equity.
This additional deal is a strong endorsement of the intrinsic resilience of the Indian economy which is expected to grow bigger with comprehensive digital enablement.
With this deal, Jio Platforms has raised ?92,202.15Cr in less than six weeks.
8. ADIA-Jio Deal
Abu Dhabi Investment Authority (ADIA) has invested Rs. 5683.5Cr in exchange for a 1.16% stake.
This investment is a strong endorsement of RIL’s strategy and India’s potential as this deal will help Jio Platforms’ mission of taking India towards digital leadership and generate inclusive growth opportunities.
ADIA’s investment at an equity value of Rs. 4.91LCr and enterprise value of Rs. 5.16LCr comes close on the heels of Mubadala’s investment Company’s purchase of 1.85% in Jio Platforms.
After this deal, Jio has collected a total investment of Rs. 97,885.65Cr or $12.96bn which shall help Jio pare off half of its net debt.
By,
Virtika Choudhry
Reference Links:
https://thewire.in/business/Jio-facebook-deal-regulation-scrutiny
www.economictimes.indiatimes.com/tech/ites/
www.economictimes.indiatimes.com/industry/
www.generalatlantic.com/media-article/
www.moneycontrol.com/news/business/
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