PE firm Vista equity to invest ₹ 11,367 crore in Jio Platforms2 min read . Updated: 08 May 2020, 08:25 AM IST
Vista will become the largest investor in Jio Platforms after RIL and Facebook.
Private equity firm Vista Equity Partners will invest Rs11,367 crore in Jio Platforms for a 2.32% stake. This is Jio Platforms' third deal after Facebook and Silver Lake’s share acquisition plans over the last two weeks.
“This investment values Jio Platforms at an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore," Reliance Industries said in a statement on Friday.
"We believe in the potential of the Digital Society that Jio is building for India. Mukesh’s vision as a global pioneer, alongside Jio’s world-class leadership team, have built a platform to scale anda advance the data revolution it started. We are thrilled to join Jio Platforms to deliver exponential growth in connectivity across India, providing modern consumer, small business and enterprises softwareto fuel the future of one of the world’s fastest growing digital economies," commenting on the investment, Robert F. Smith, Founder, Chairman and CEO of Vista, said.
With the investment from Vista equity, Jio Platforms is set to net a combined ₹60,596 crore for the unit of Reliance Industries which comprises mainly its telecom business under Reliance Jio Infocomm, which is the largest in the country with over 388 million subscribers.
Vista will become the largest investor in Jio Platforms after RIL and Facebook. Facebook said on April 22 it would invest $5.7 billion in Jio Platforms for a 9.99% stake. Then on May 4, US private equity firm Silver Lake said it will invest ₹5,655.75 crore ($747 million) in Jio Platforms for a 1.15% stake.
Vista has more than $57 billion in cumulative capital commitments and its global network of companies collectively represent the 5th largest enterprise software company in the world. Currently, Vista portfolio companies have a significant presence in India with over 13,000 employees.
Silver Lake Partners - the world's largest tech investor - on Monday agreed to invest ₹5,655.75 crore to buy a 1.15 per cent stake in billionaire Mukesh Ambani's digital unit that houses India's youngest but biggest telecom firm.
Silver Lake investment in Jio Platforms was at a 12.5 per cent premium to the Facebook's USD 5.7 billion ( ₹43,574 crore) investment for a 9.99 per cent stake in the firm.
Facebook had bought a 9.99 per cent stake in Jio Platforms for USD 5.7 billion ( ₹43,574 crore) at an enterprise value of ₹4.62 lakh crore.
Morgan Stanley acted as financial advisor to Reliance Industries for the completion of the deal.