Reliance Jio gets investment from TPG and L Catterton

ST Staff
Sunday, 14 June 2020

The investment of the Public Investment Fund ( PIF) from Saudi Arabia, which manages over $300 billion in assets, will provide money in addition to the $8 billion that Jio has raised over the past three deals.
 

According to the reports that came out last week, it stated that Saudi's investment firm Public Investment Fund (PIF) of Saudi Arabia was eyeing on buying a minority stake in India's based Reliance industries digital unit Jio.

Reliance Industries raised a total of Rs 6,441.3 crores from the sale of two stakes in its Jio Platforms. According to Reliance, Global investment firm TPG will purchase a 0.93 per cent stake for Rs 4,546.80 crores, while private equity firm L Catterton will buy a 0.39 per cent stake for Rs 1,894.50 crores.

Reliance's Jio has raised over 4,000 crores from worldwide asset company TPG. As a result, with this investment, TPG receives 0.93 per cent stake in Jio. The deal is set to be closed in the coming week.

The investment of the Public Investment Fund ( PIF) from Saudi Arabia, which manages over $300 billion in assets, will provide money in addition to the $8 billion that Jio has raised over the past three deals.

About a month ago, the private equity firm Vista Equity Partners said it acquired 2.3 per cent of Jio's stock for 113.67 billion rupees ($1.5 billion)
Reliance cut Facebook $5.7 billion deal on 22 April for a 9.99% stake in Jio Platforms and raised $750 million from private equity firm Silver Lake, some days later.

Mubadala Investment Company, an Abu Dhabi based investor, has invested Rs 9.093.60 crore for 1.85% stake in Jio Platforms last week. It was Jio's sixth equity investment out of the total equity value of 4.91 lakh crore and Rs 5.16 lakh crore enterprise value.

Jio platform has so far raised 1.04 lakh crore rupees with selling 22.38 per cent stake of the company.

The mega telo has gained all this investment from the following companies -

S No

Investor

Amount

Per cent Stake

1

Facebook

43,573.62

9.99%

2

Silver Lake Partners

5,655.75

1.15%

3

Vista Equity Partners

11,367.00

2.32%

4

General Atlantic

6,598.38

1.34%

5

KKR

11,367.00

2.32%

6

Mubadala

9,093.60

1.85%

7

Silver Lake Partners – Additional Investment

4,546.80

0.93%

8

Abu Dhabi Investment Authority

5,683.50

1.16%

9

TPG

4546.8

0.93%

10

L Catterton

1894.5

0.39%

 

Total

1,04,326.64

22.38%

This investment towards Jio by the Saudi company is the biggest in India for Mubadala Development company.

Parent company of Jio, Reliance industries also raised Rs 53,124 crore from a rights issue, which got an amazing response from its shareholders and was subscribed 1.59 times.

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