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US-Based General Atlantic To Buy 1.3% Stake In Jio Platforms For Rs 6,598 Crore

On Sunday, Reliance Industries announced that US-based private equity firm General Atlantic will invest Rs 6,598.38 crore in Jio Platforms for a 1.34% stake. That marked the fourth big deal between Jio Platforms and a US-based technology investor within a month, following investments by major internet companies Facebook and private equity firms Silver Lake and Vista Equity Partners. The General Atlantic deal values the digital unit Jio Platforms of Reliance Industries, which houses Reliance Jio Infocomm, at an equity value of Rs 4,91 lakh crore and an enterprise value of Rs 5,16 lakh crore, the conglomerate-led by Mukesh Ambani, a billionaire-said in a statement.

Reliance Industries has said that the transaction is subject to regulatory approvals.

“General Atlantic shares our vision of a Digital Society for India and believes strongly in the transformative power of digitization to enrich the lives of 1.3 billion Indians. We are excited to leverage the proven global expertise and strategic insights of US-based General Atlantic over 40 years of technology investing to Jio’s advantage, “said Mr. Ambani, Chairman and Managing Director of Reliance Indus.

Reliance Jio has so far earned Rs 67,194.75 crore with its contract with General Atlantic in less than four weeks. Together, the four transactions would further offset the debt of the Reliance Industries company. Mr. Ambani plans to free up net debt in Reliance Industries by 2021.

The investment list began in April with Facebook announcing a Rs 43,574 crore investment for a 9.99% stake in Jio Platforms. In May, Silver Lake reported a Rs 5,656 crore investment in Jio Platforms followed by Rs 11,367 from Vista Equity Partners.

Saudi Arabia’s Public Investment Fund (PIF) also plans to purchase a minority stake in Jio, news agency Bloomberg reported last week.

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