Jio Platforms Ltd emerges as biggest private equity magnet
- IBEF
- June 15, 2020
Jio Platforms Ltd, the digital services subsidiary of Ambani-promoted Reliance Industries Ltd (RIL), has appeared as India’s biggest private equity (PE) magnet, at a time when much of the world is in a lockdown and businesses are facing an uncertain future due to the COVID-19 pandemic.
Jio sold 22.38 per cent stake worth Rs 1.04 trillion (US$ 14.75 billion) to 10 global investors in a span of eight weeks. This the largest continuous fundraise by any company in the world. Out of the total, at least Rs 60,753.36 crore (US$ 8.62 billion) came in the form of PE investments from eight marquee global investors. This is by far the largest known PE investment in a single company in India so far.
On June 13, 2020, company attracted investment from California-based TPG Capital and Greenwich-headquartered L. Catterton, the two PE firms plan to invest Rs 4,546.80 crore (US$ 645.03 million) and Rs 1,894.50 crore (US$ 268.76 million) respectively at an equity value of Rs 4.91 trillion (US$ 69.66 billion) and an enterprise value of Rs 5.16 trillion (US$ 73.20 billion).
These investments will translate into a 0.93 per cent stake for TPG and a 0.39 per cent stake for L. Catterton in Jio Platforms.
Mr Jim Coulter, co-CEO TPG, said, “Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come."
TPG is an alternative assets investor with at least US$ 119 billion worth of assets under management.
Mr Michael Chu, global co-CEO of L. Catterton, said, “We’re strong supporters of fostering growth through product development, enhanced digital capabilities and strategic alliances."
With about US$ 20 billion of equity capital across seven fund strategies in 17 offices globally, L. Catterton is the world’s largest consumer-focused PE firm.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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