IBEF: June 08, 2020
A unit of Abu Dhabi Investment Authority (ADIA) invested Rs 5,683.50 crore (US$ 806.28 million) in Jio Platforms, taking the total capital raised by its digital services subsidiary to around Rs 1 trillion (US$ 14.19 billion) in just seven weeks.
This investment comes two days after Reliance Industries Ltd (RIL) announced two large investments by foreign investors adding up to Rs 13,640.4 crore (US$ 1.94 billion) in Jio Platforms. This latest investment was by an undisclosed, wholly owned subsidiary of ADIA, valuing Jio Platforms at Rs 4.91 trillion (US$ 69.66 billion).
“I am delighted 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," said RIL chairman and managing director Mr Mukesh Ambani.
So far, Jio Platforms has raised Rs 97,885.65 crore (US$ 13.89 billion) from seven marquee global investors.
On May 5, a 1.85 per cent stake in Jio Platforms for Rs 9,093.60 crore (US$ 1.29 billion) were bought by Abu Dhabi-based Mubadala Investment Co. Silver Lake also announced an additional investment of Rs 4,546.80 crore (US$ 645.03 million), which had earlier invested Rs 5,655.75 crore (US$ 802.35 million) in Jio Platforms on 4 May, bringing its aggregate investment to Rs 10,202.55 crore (US$ 1.45 billion), for a 2.08 per cent stake.
The company has been raising funds since April end, starting with Facebook’s Rs 43,574 crore (US$ 6.18 billion) investment in April, Jio Platforms has sold stakes to private equity firms KKR & Co., Silver Lake, Vista Equity Partners, General Atlantic, Mubadala, and now ADIA.
According to RIL statement, the latest investment will fetch ADIA a 1.16 per cent stake in Jio Platforms on a fully diluted basis.
ADIA, which is a globally diversified investment institution, invests funds on behalf of the government of Abu Dhabi through a strategy focused on long-term value creation. It has made several investments in India, mostly through its private equities department.
“Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socioeconomic 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”, said Mr Hamad Shahwan Aldhaheri, executive director of the private equities at ADIA.
“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," said Mr Aldhaheri.
Jio, with 388 million users, combines all of RIL’s digital and telecom initiatives, including Jio digital services, mobile and broadband, apps, tech capabilities such as artificial intelligence, Big Data, and Internet of Things, and other investments such as in Den Networks, Hathway Cable, and Datacom
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.