Reliance sells 1.34 per cent in Jio Platforms for 6,598.38 cr to General Atlantic

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Reliance Industries on Sunday announced the sale of 1.34 per cent stake in its digital unit to global equity firm General Atlantic for Rs 6,598.38 crore—the fourth deal in less than four weeks that will inject a combined Rs 67,194.75 crore in the oil-to-telecom conglomerate to help it pare debt. “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. General Atlantic’s investment will translate into a 1.34 per cent equity stake in Jio Platforms on a fully diluted basis,” the company said in a statement.

The deal follows Facebook picking up a 9.99 per cent stake in the firm that houses India’s youngest but largest telecom firm on April 22 for Rs 43,574 crore. Within days of that deal, Silver Lake – the world’s largest tech investor – bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore. On May 8, US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms for Rs 11,367 crore.

“With this investment, Jio Platforms has raised Rs 67,194.75 crore from leading technology investors, including Facebook, Silver Lake, Vista Equity Partners and General Atlantic in less than four weeks,” the statement said.

Strategic and financial investors are to form 20 per cent of Jio Platforms. Between the four deals, Reliance has sold 14.8 per cent of Jio Platforms and more such investments are likely in near future.Ambani, 63, chairman and managing director of Reliance, had in August last year set a target of March 2021, to make his conglomerate net debt-free. But thanks to the Facebook deal, a Rs 53,125 crore rights issue, private equity investments, and more stake sale to companies such as Saudi Aramco, the target is likely to be achieved by December. 

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