Jio to get a new Rs. 11,367 crores investment from another US based private equity firm

After Facebook and US based private equity firm Silver Lake, it is now US based private equity firm Vista Equity Partners who have decided to invest in Reliance Jio.

On Friday, the 8th of May, Reliance Industries announced a $1.5 billion (Rs. 11,367 crores) stake sale in its digital unit Jio Platforms. It declared a third deal in little over two weeks that will implant a combined $8 billion (Rs. 60,596.37 crores) in the telecoms-to-energy group to help it lower debt. 

“Private equity firm Vista Equity Partners is buying a 2.32 percent stake in Jio Platforms, the unit that houses Reliance’s telecoms venture Jio Info COMM, for Rs. 11,367 crores. The investment gives Jio Platforms an equity value of Rs. 4.91 lakh crores and an enterprise value of Rs. 5.16 lakh crores”, said Mumbai-headquartered Reliance in a statement.

Previously, On the 22nd of April, Reliance had cut a $5.7 billion (Rs. 43,574 crores) deal with Facebook for a 9.99 percent stake in Jio. In the following days Reliance achieved a $750 million (Rs. 5,656 crores) investment from private equity firm Silver Lake

Mukesh Ambani, the billionaire tycoon who owns and controls Reliance, also intends to sell $7 billion (roughly Rs. 52,880 crores) in new shares. The recent deals he has acquired, along with this plan, will help Reliance to achieve its goal of eliminating $21.4 billion (roughly Rs. 1.62 lakh crores) of net debt by the end of this year.  

“The negotiations between Reliance and Vista were built off of personal connections made between the private equity firm’s founder Robert Smith and Ambani. The discussions were led by Ambani’s close aide Manoj Modi and Brian Sheth, co-founder of Vista who is half-Indian and whose father hails from Ambani’s home state of Gujarat.”, said a person familiar with the matter.

Mukesh Ambani, the billionaire tycoon, is all set to get along a new retail venture in combination with Jio. This venture could turn out to be a great challenge to the established e-commerce firms such as Amazon and Walmart’s Flipkart.

leave a comment

Create Account

Log In Your Account