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Jio's lockdown stake sale, this time to Abu Dhabi sovereign fund for 5,683 cr

Facebook was the first investor in Jio Platforms, buying a 9.99% stake for Rs43,573.62 crore. It is also the largest so far. The deal was announced on 22 April.Premium
Facebook was the first investor in Jio Platforms, buying a 9.99% stake for Rs43,573.62 crore. It is also the largest so far. The deal was announced on 22 April.

  • Jio has so far raised Rs97,885.65 crore by selling ~21% stake to 8 investors that include Facebook, General Atlantic, KKR
  • The stake sales are part of RIL's plan to be debt-free by March. It raised Rs53,124 crore via a rights issue that closed 4 June

NEW DELHI: Jio Platforms will raise Rs5,683.50 crore from Abu Dhabi Investment Authority (ADIA) against 1.16% stake sale to the sovereign wealth fund, according to a release issued on Sunday by the Reliance Industries Limited subsidiary.

The transaction gives Jio Platforms an equity valuation of Rs4.91 trillion and an enterprise value of Rs5.16 trillion, the same as most of the eight deals have taken place at.

Jio Platforms had announced two stake sales on Friday, the first being that of 1.85% equity for Rs9,093.60 crore to Abu Dhabi's Mubadala Investment Company and the other being of around 1% for Rs4,546 crore to an existing set of investors including private equity Silver Lake.

Even as the country is still coming out of a two-month long stringent lockdown, the Mukesh Ambani company has raised just short of Rs1 trillion by selling stakes to some of the most marquee names from Silicon Valley and the rest of the world. The latest deal marks the eighth stake sale in less than seven weeks by India's largest 4G mobile and technology paltform.

So far now, Jio has raised Rs97,885.65 crore by selling around 21% of its stake to eight investors that also include Facebook, KKR, Vista Equity Partners and General Atlantic.

The first and the largest stake sale out of the eight was that of 9.99% to Facebook for Rs43,573.62 crore, announced on 22 April.

All the eight transactions are subject to regulatory approvals, with the one with Facebook likely to undergo a tighter scrutiny given concerns over net neutrality.

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

The stake sales are part of RIL's plan to be debt-free by March. Most likely, the target is likely to be achieved by December, the parent company having mopped up Rs53,124 crore from a rights issue that closed on 4 June.

Of the Rs43,574 crore that it will receive from Facebook, Jio plans to use Rs28,000 crore to redeem optionally convertible preference shares (OCPS) of its parent RIL and retain Rs15,000 crore in its books, Jio's top management had said in a conference call on 22 April.

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