Indian billionaire Mukesh Ambani led Reliance Industries Limited announced that the US-based private equity firm General Atlantic is all set to invest $870 million (INR 6,598 crores) in Reliance subsidiary Jio Platforms. The investment will give General Atlantic a hold of a 1.34% stake in Jio Platforms, including music, movie apps, and telecoms venture Jio Infocomm.
In a statement, the telecom giant said, this deal gave rise to the Jio Platform's equity valued at INR 4.91 lakh crores and the Reliance Industries Ltd. valued at INR 5.16 lakh crores. In less than a month, Reliance subsidiary Jio has bagged over $8 billion in investment.
Earlier this investment, in April, Facebook had invested $5.7 billion (INR 43,574 crores) and got a hold of 9.99% stakes of Jio Platforms. After a few days of Facebook deal, the US-based private equity firm, Silver Lake, had funded $750 million (INR 5,656 crores) in investment and 1.15% stakeholding in Jio Platforms. Early this month, American private equity firm, Vista Equity Partners, has also invested $1.5 billion (INR 113.67 billion) and got control of a 2.32% stake in the Jio Platform Counting these 3 deals, the tycoon had sold a 13.46% (about $8 billion) of its telecom subsidiaries stakes.
The Mumbai-based oil-to-telecoms giant plans to sell-off $7 billion ( nearly INR 53,100 crores) in new shares in an effort to cut the piled up debts that it had taken to secure the top position of its telecoms venture, Jio Infocomm, to make it a major provider of internet and cellular services of India. It has targeted to eliminate the net debts of $21.4 billion (nearly INR 1.62 lakh crores) at the end of 2020.
Asia's richest man, Mukesh Ambani, has launched Jio Platforms in late 2016, and since the emergence, it has dragged out several rivals from the market. Jio had also formed in an effort to diversify its pace from petrochemicals and refining. The investors have underlined the Reliance strength of the digital business that is just 4 years old.
On this investment, Reliance Industries Limited chairman Mukesh Ambani said, we are excited to take advantage of General Atlantic's proven global strategic and expert insights and more than 40 years of technology investing for the benefit of Jio.
The US-based private equity firm, General Atlantic, majorly invests in sectors like financial services, technology, and healthcare. It has stakes in Alibaba, Airbnb, Facebook, and ByteDance.
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