Jio Platforms raises $1.2B from Abu Dhabi's state fund Mubadala

Daniel Fowler
June 6, 2020

On the National Stock Exchange (NSE), the scrip climbed as much as 2.42 per cent to Rs 1,618.00 per share. KKR has announced an investment worth Rs 11,367 crore in Jio Platforms for a 2.32% equity stake; while General Atlantic announced a deal worth Rs 6,98.38 crore for 1.34% stake.

With this investment, Silver Lake's investment in Jio Platforms has increased to INR 10,202.55 Cr, acquiring a 2.08% equity stake in Jio Platforms on a fully diluted basis.

Reliance Jio's net debt has fallen to ₹21,900 crore from its peak of ₹2.17 lakh crore, with global investors pumping funds over the last six weeks, for equity stake in its parent Jio Platforms Ltd., which is a wholly owned subsidiary of Reliance Industries Limited.

Commenting on the deal, RIL Chairman and Managing Director Mukesh Ambani said, "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".

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Jio Platforms, which runs movie, news and music apps as well as the telecom enterprise Jio Infocomm, has now sold a combined stake of 18.97 percent in six massive fundraising deals. "We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India's digital growth journey". Other recent investments into Jio Platforms were made at the same valuation. Now, the total amount raised by Jio Platforms, excluding the recently concluded rights issue, stands at Rs 92,201 crore.

While the world is grappling with the COVID-19 outbreak with businesses and economies taking a severe hit, India's largest mobile operator is on a money-raising spree from leading global companies of the likes of Facebook, General Atlantic, KKR, Vista Equity Partners, Silver Lake and, the latest, Abu Dhabi-based sovereign investor Mubadala.

"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.

- Morgan Stanley served as financial advisor to Reliance Industries and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel.

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