Home >Companies >News >Facebook pays 43,574 crore subscription amount to Jio Platforms

Facebook Inc-owned Jaadhu Holdings LLC has paid the subscription amount of 43,574 crore to Reliance Industries Ltd’s (RIL) digital services subsidiary Jio Platforms Ltd to acquire 9.99% stake in the latter, RIL said in a statement on Tuesday.

“Jio Platforms has allotted equity shares to Jaadhu Holdings following which Jaadhu Holdings holds 9.99% of the fully diluted equity share capital of Jio Platforms," Reliance Industries said in its stock exchange filing.

Facebook was the first deal announced by Jio Platforms on 22 April, after which 11 more foreign investors evinced interest. The deal was approved by the Competition Commission of India (CCI) on 24 June.

Intel Capital, the investment arm of US-based semiconductor giant, last week, had become the eleventh foreign investor in the RIL subsidiary, by investing an amount of 1,894.50 crore.

With the Intel deal, the Ambani firm has so far raised 1.17 trillion from 11 investors in 12 deals in less than 11 weeks. They now own 25.09% stake in the company. Silver Lake Partners, one of the 11 investors, had invested in two tranches.

Other investors in Jio Platforms include TPG, KKR, L Catterton, General Atlantic, Vista Equity Partners, two sovereign wealth funds from Abhu Dhabi -- Abu Dhabi Investment Authority and Mubadala – and one from Saudi Arabia – Public Investment Fund.

Reliance Jio Infocomm Ltd, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.

The stake sales were part of RIL's plan to become debt-free by March, a target India’s largest company on 19 June said it had already achieved, even before the Intel deal. However, analysts have pointed out that the net-debt free target has not been achieved as funds from these deals are yet to flow in.

According to a 21 June Mint report, analysts at CLSA, Bernstein, Kotak Institutional Equities, Goldman Sachs and Nomura pegged the company’s net liabilities at between 2.4 trillion and 2.6 trillion in FY20.

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