KKR to buy 2.32% Jio Platforms stake for ₹11,367 crore

Ruben Fields
May 23, 2020

The deal pegs Jio Platform's equity value at Rs 4.91 trillion and its enterprise value at Rs 5.16 trillion, the same valuation at which General Atlantic bought a stake in the unit just days earlier. There are no similar opportunities available anywhere else globally.

"KKR shares our ambitious goal of building a premier Digital Society in India", he added.

The investment from New York-based KKR, which has written checks to about 20 tech companies including ByteDance and GoJek in the past four decades, values Reliance Jio Platforms at $65 billion.

KKR's investment will translate into a 2.3% stake in Jio, which was launched as a mobile network operator in 2016, and has since come to dominate the market in India.

"I am delighted to welcome KKR, one of the world's most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians", said RIL Chairman Mukesh Ambani in a statement. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years.

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Officials in the city of 12 million have actually stated a five-day vacation in a proposal to obtain citizens to stay at home. More than 310,000 infections have been confirmed, the third-highest number worldwide after the U.S. and Russian Federation .

The announcement today further shows the appeal of Jio Platforms, which has raised $10.35 billion in the past month by selling about 17% of its stake, to foreign investors that are looking for a slice of the world's second-largest internet market. The money invested by KKR will help the company achieve what it calls a Digital India vision for 1.3 billion people and businesses across the country, including small businesses, micro-businesses and farmers. It is making the investment from its Asia private equity and growth technology funds.

"Reliance Industries is positioning itself as a global technology company with worldwide technology and private equity players lining up for a Jio Platforms stake", said Sudeep Anand, head of institutional research at IDBI Capital Market Services Ltd.

All the five transactions are subject to regulatory approvals, with the one with Facebook likely to undergo a tighter scrutiny given concerns over net neutrality.

Reliance Jio and its investments in India, particularly in the telecom space, have changed the very dynamics of the industry.

Jio Platforms, a wholly-owned subsidiary of Reliance Industries provides digital services across India, with more than 388 million subscribers. Over the last month, the company has raised INR 78,562 Cr from technology investors like Facebook, Silver Lake, Vista, and General Atlantic, along with KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.

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