Reliance Industries has announced it is again selling a stake in the Jio platforms to KKR. No, it’s not the IPL franchise but a US-based firm that is buying 2.32 percent for Rs. 11,367 crore. In fact, this so far the largest investment made by KKR in the Asian market. However, this transaction also requires
Reliance Industries has announced it is again selling a stake in the Jio platforms to KKR. No, it’s not the IPL franchise but a US-based firm that is buying 2.32 percent for Rs. 11,367 crore. In fact, this so far the largest investment made by KKR in the Asian market. However, this transaction also requires regulatory approvals.
“This transaction values Jio Platforms at an equity value of Rs. 4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore,” Reliance Jio said. Adding to that, “Over the last month, leading technology investors, such as Facebook, Silver Lake, Vista, General Atlantic, and KKR have announced aggregate investments of Rs. 78,562 crore into Jio Platforms.”
Besides, Reliance Jio (the telecom firm), JioSaavn, Haptik, and Jio Cinema also come under RIL. These are the digital arm of the company. In fact, Reliance Jio has invested in a lot of platforms, such as broadband, IoT, AR, and VR. It also includes smart devices, Artificial Intelligence, and blockchain.
This is the fifth time that the operator has sold its stake to the US firm. The US Private equity firm KKR is planning to invest Rs. 11, 367 crore. “We are looking forward to leveraging KKR’s global platform, industry knowledge, and operational expertise to further grow Jio,” RIL chairman Mukesh Ambani said while announcing the deal with KKR.
Recently, equity firm General Atlantic has announced that it is buying a 1.34 percent stake for Rs. 6,598.38 crore. Earlier this month, Vista Equity Partner shared its plans to invest in Reliance Jio. The company has announced Rs. 11,367 crore investments for only buying a 2.32 percent stake.
Then, Silver Lake is investing Rs. 5,655 crore for buying a 1.15 percent stake. Notably, Facebook was the first company that announced its investment plans. The firm is buying a 9.99 percent stake in the Reliance Jio platform.
It is also worth mentioning that Reliance Jio might sell more stake in the coming days as it wants to raise $1 billion. So far, the company has sold 17. 12 percent to five companies, and as per market sources RIL is expected to reduce its holding in Jio by 75 to 80 percent.