Jio Platforms will receive an investment of Rs. 11,367 crores from Saudi Arabia's sovereign wealth fund Public Investment Fund (PIF) for an equity stake of 2.32 percent, Reliance Industries announced on Thursday. With the latest investment, Jio Platform has raised a total of Rs. 1,15,693.95 crores in nine weeks. The recent investors include Facebook, Silver Lake, Vista Equity Partners, and General Atlantic, among others. The investments in Jio Platforms notably come at the time when the global pandemic has affected various small and large businesses.
As a result of the fresh investment, Jio Platforms has added a total of 10 investors that have acquired a total stake of 24.70 percent. The investors on board include Facebook, Silver Lake, Vista, General Atlantic, KKR, Mubadala, and Abu Dhabi Investment Authority. The telecom subsidiary of the Indian conglomerate received a total of Rs. 6,441.3 crores from TPG and L Catterton on Sunday.
“From Oil Economy, this relationship is now moving to strengthen India's New Oil (Data-driven) Economy, as is evident from PIF's investment into Jio Platforms,” said Mukesh Ambani, chairman and managing director, Reliance Industries, in a statement.
The latest move by PIF is its largest investment into the Indian economy. The sovereign wealth fund is known for allocating wealth in worldwide markets.
“We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth,” said Yasir Al-Rumayyan, governor of PIF, in the statement. “This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia's economy and our country's citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom.”
The transaction is subject to regulatory and customary approvals. Morgan Stanley acted as a financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.
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