Home >Companies >News >RIL AGM: Google to invest 33,737 crore in Jio Platforms for 7.7% stake

NEW DELHI: US tech giant Google will invest 33,737 crore in Jio Platforms for a 7.7% stake, Reliance Industries chairman and managing director Mukesh Ambani said on Wednesday at the company’s 43rd annual general meeting. This makes Google the 13th investor in the Reliance Industries subsidiary, valuing the mobile to digital firm . The investment makes it a zero debt company. Ambani said Jio's target of capital raising was now complete.

This would be the first time Facebook and Google, competitors for user data, will be investors in the same company.

The latest transaction gives Jio Platforms an equity valuation of 4.91 trillion and an enterprise value of 5.16 trillion, the same pricing at which most of the other stake sales in Jio happened.

With this, RIL has sold a total of 33% stake in Jio Platforms to overseas tech and private equity giants including Facebook, General Atlantic, TPG, KKR, Silver Lake, L Catterton, Vista Equity Partners, Abu Dhabi Investment Authority, Mubadala Investment Company, and Public Investment Fund (PIF), Intel Capital and Qualcomm Ventures.

RIL is the first Indian company to have crossed market capitalization of $150 billion, riding on the success of its mobile digital arm Jio Platforms. Jio Platforms’ fully-owned subsidiary Reliance Jio Infocomm Limited has 388 million users.

“I look to work with them in a collaborative way. What they bring is more than money. They bring a strng vote of confidence in our bold mission and our ability to execute," Ambani said in his online address. This is the first time India’s largest company held a virtual AGM, like many other companies, owing to covid-19 restrictions. No physical meeting happened.

Like all RIL AGMs, the 43rd was keenly awaited too – this time on investors’ hopes of the company announcing the launch of its financial services and payments bank. The company has a 70:30 joint venture with State Bank of India (SBI) and financial services like insurance, broking, payments are seen as the next frontier for the disruption expected from RIL, similar to the one it caused in mobile services.

Mukesh, the elder of the two sons of late Dhirubhai Ambani, has successfully pivoted the oil and gas exploration and petrochemicals company towards telecom and retail. Its subsidiary, Jio Platforms, has attracted who’s who of the world’s tech and private equity giants like Facebook, Qualcomm, Intel, KKR and others. Latest reports, unformed by RIL, have said search behemoth Google could invest as much as $4 billion in Jio Platforms.

RIL reported a consolidated turnover of 6.59 trillion in 2019-20, up 5.4% from a year earlier. The net profit at the group rose 11.3% to 443.24 billion.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Edit Profile
My ReadsRedeem a Gift CardLogout