Reliance Jio has announced the eighth investment in a span of just over six weeks, with Abu Dhabi Investment Authority (ADIA) picking up a 1.16 percent stake in Reliance Jio Platforms Ltd, the cutting edge technology division of Reliance Jio, for Rs 5,683.50 crore. The deal values Reliance Jio at an equity value of Rs 4.91 lakh crore, and enterprise value of Rs 5.16 lakh crore. In brief succession, Jio Platforms has seen unprecedented foreign investment in its endeavours, after back to back investments from Abu Dhabi-based Mubadala Investment Company, and a returning investment from American equity firm, Silver Lake.
Commenting on the investment, Mukesh Ambani, chairman and managing director of Reliance Industries Ltd, said, “I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities. This investment is a strong endorsement of our strategy and India’s potential.”
Hamad Shahwan Aldhaheri, executive director of the private equities department of ADIA, also said, “Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socio- economic developments and the transformative effects of technology on the way people live and work. The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution. Our investment in Jio is a further demonstration of ADIA’s ability to draw on deep regional and sector expertise to invest globally in market leading companies and alongside proven partners.”
ADIA is a sovereign wealth fund owned by the Emirate of Abu Dhabi, which is known for making landmark investments on behalf of the government of Abu Dhabi. Founded over 44 years ago, ADIA is one of the world’s premier investors, and is a member of the International Forum of Sovereign Wealth Funds. ADIA’s investment in Jio Platforms reflects the diverse portfolio of investors attracted towards Reliance Jio’s offering, and further establishes the unbound promise that the company represents towards taking forward the steady digitisation of India. With ADIA’s backing, Reliance Jio Platforms has raised Rs 97,885.65 crore in foreign investments so far, selling 21.06 percent stake of the company to an enviable consortium of investors.
So far, investors in Reliance Jio Platforms Ltd include Facebook, Silver Lake, Vista Partners, KKR, General Atlantic and Mubadala. Facebook, the world’s largest social media corporation, picked up a 9.99 percent stake in Reliance Jio for Rs 43,574 crore. Following Facebook is Silver Lake, which now has a 2.08 percent stake in Jio Platforms in exchange of an investment of Rs 10,203 crore. The third entity to invest in Jio Platforms was Vista Equity Partners, which invested Rs 11,367 crore for a 2.32 percent stake in the company. General Atlantic then followed up with an investment of Rs 6,598.38 crore for a 1.34 percent stake. Investment firm KKR also followed up with a Rs 11,367 crore investment for a 2.32 percent stake in the company. Abu Dhabi-based Mubadala has invested Rs 9,093.60 crore for a 1.85 percent stake in Jio Platforms as well.
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