Jio to raise Rs 13,640 crore additionally from Mubadala, Silver Lake

Jio Platforms to obtain an additional investment of Rs 4546.80 cr from Silver Lake which composes their total investment to above Rs 10,000 cr for a 2% stake.

 

Jio Platforms is determined to raise Rs 13,640.4 crore by selling a 1.85% stake to Mubadala Investment Co. which is Abu Dhabi’s second-largest sovereign financier, along with further 0.93% stake to US private equity investor Silver Lake and its capitalists. This is the sixth tranche of capital investments in the past six weeks for the digital and telecommunication business component of Reliance Industries.

 

On Friday, the latest investment of Rs 9,093.6 crore from Mubadala was declared which helped in driving the shares of RIL to a record-breaking high. The investment by Silver Lake was declared sometime later on the very same day which swooped in exactly a month after the company had bought a 1.15% stake in early May for Rs 5,655.75 crore. The most recent round of investment made by Silver Lake and its investors rounds up to Rs 10,202.55 crore for a 2.08% stake.

 

These fresh investments bolts Jio Platforms’ equity value at Rs 4.91 lakh crore and the enterprise value at Rs 5.16 lakh crore. It stands to collect Rs 92,202.15 crore from six of their investors in exchange for a 19.9% stake.

 

The capital being acquired from stake sales in Jio Platforms and the Rs 53,124 crore obtained from a rights issue will help in reducing Reliance’s amalgamated net debt by beyond 90% from Rs 1.61 lakh crore towards the end of FY20.

 

In a statement released on Friday, Mukesh Ambani, chairman of Reliance, mentioned,  “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,” He further added, “We look forward to benefitting from Mubadala’s experience and insights from supporting growth journeys across the world.”

 

“…I would like to emphasize that Silver Lake’s additional investment in Jio Platforms, within a span of five weeks during the Covid-19 pandemic, is a strong endorsement of the intrinsic resilience of the Indian economy, which will surely grow bigger with comprehensive digital enablement,” Ambani stated in a distinct statement later on the same day.

 

Khaldoon Al Mubarak, managing director at Mubadala expressed, “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,” “With Jio’s network of investors and partners, we believe that the platform company will further the development of the digital economy.”

 

Egon Durban, Silver Lake Co-CEO stated, “…We are excited to increase our exposure and bring more of our co-investors into this opportunity…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.” 

 

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