Billionaire Mukesh Ambani’s Jio Platforms Ltd has emerged as India’s biggest private equity (PE) magnet, at a time when much of the world is in a lockdown and businesses are facing an uncertain future due to the covid-19 pandemic.
The digital services subsidiary of Ambani-promoted Reliance Industries Ltd (RIL) sold 22.38% stake worth ₹1.04 trillion ($13,7 billion) to 10 global investors in a span of eight weeks—the largest continuous fundraise by any company in the world. Of this, at least ₹60,753.36 crore came in the form of PE investments from eight marquee global investors. This is by far the largest known PE investment in a single company in India so far.
California-based TPG Capital and Greenwich-headquartered L. Catterton on Saturday said the two PE firms will invest ₹4,546.80 crore and ₹1,894.50 crore respectively in Jio Platforms at an equity value of ₹4.91 trillion and an enterprise value of ₹5.16 trillion.
The investments will translate into a 0.93% stake for TPG and a 0.39% stake for L. Catterton in Jio Platforms.
Jim Coulter, co-CEO TPG, said, “Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come."
TPG is an alternative assets investor with at least $119 billion worth of assets under management. Michael Chu, global co-CEO of L. Catterton, said, “We’re strong supporters of fostering growth through product development, enhanced digital capabilities and strategic alliances."
With about $20 billion of equity capital across seven fund strategies in 17 offices globally, L. Catterton is the world’s largest consumer-focused PE firm.