On Saturday Reliance Industries announced that it had sold a 0.93 per cent of its stake in its digital services arm Jio Platforms to American investment company TPG Capital for Rs 4,546.80 crore. The multinational conglomerate said that with the latest deal, it has raised over Rs 1 lakh crore from leading global investors, including social media giant Facebook.
Reliance stated that “ TPG will invest Rs 4,546.80 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.”
With this investment, Jio industries have raised Rs 102,432.45 crore from leading global technology investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, Mubadala, Abu Dhabi Investment Authority, and TPG since April 22, 2020.
Reliance further announced that L Catterton, a US-based capital market company, will buy nearly 0.39 per cent stake in Jio Platforms worth Rs 1,894.50 crore.
These deals with the global investors will enable RIL to successfully eliminate its net debt by the end of the year 2020-2021, as per the reports. At the end of the March quarter, Reliance’s debt was Rs 3,36,294 crore while its cash in hand was 1,75,259 crore. After adjusting cash, internet debt came to Rs 1,61,035 crore.
Mukesh Ambani, the Chairperson of Reliance Industries said the deal with TPG was an outcome of his company’s efforts to digitally empower Indians.“We have been impressed by TPG’s track record of investing in global technology businesses that serve many many consumers and little businesses, making the societies we sleep in better,” he added.
Meanwhile, TPG Co-Chief Executive Officer Jim Coulter praised Jio Platforms for being a pioneer for all technology-related companies. “The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to return,” he said.