Reliance Industries Ltd’s digital services subsidiary, Jio Platforms Ltd, is identified as the highest grossing company in India in regard of private equity (PE) investments during the time when the world is under a lockdown and businesses are undergoing an uncertain future due to the pandemic.
Jio has announced a sale of 22.38% stake worth Rs. 1.04 trillion in eight weeks. Jio Platforms has emerged as the largest continuous fundraising by any company in the world.
In this, deals worth minimum of Rs. 60,753.36 crore are private equity investments from eight marquee global investors. This is largest known PE investment in a single company in India by far.
Greenwich-headquartered L Catterton said they will invest Rs. 1894.50 crore in Jio Platforms. California-based TPG Capital said they will invest Rs. 4,546.80 crore in Jio Platforms. Both the companies will invest at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion.
TPG is an alternative asset firm with at least $ 119 billion worth of assets under management.
Jim Coulter, co-chief executive officer (CEO), TPG, said that 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.
L Catterton is the largest consumer-focused private equity firm in the world with $ 20 billion of equity capital across seven fund strategies in 17 offices globally.
The investments will translate into a 0.93 % stake for TPG and a 0.39% stake for L Catterton in Jio Platforms.
Jio Platform has seen a growth since April end right from when Facebook’s Rs 43,574 crore investment in April, Jio Platforms has sold stakes to private equity firms KKR & Co., Silver Lake, General Atlantic, Vista Equity Partners, ADIA , TPG and L Catterton.
The deals symbolizes rapid digitisation opportunity in India,especially after covid-19.
Jio Platforms, with 388 million subscribers, combines all of RIL’s digital and telecom initiatives, including Jio digital services, mobile and broadband, apps, tech capabilities such as artificial intelligence, big data, and Internet of Things, and other investments such as in Den Networks, Hathway Cable, and Datacom Ltd.
The deals by Jio Platforms are primarily aimed at taking Reliance closer to its ambition to become free of its net debt of Rs 1.53 trillion by March 2021.
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