Even in the time of the pandemic, Reliance Jio leads the news because of an increase in the number of companies investing in Reliance Jio.
Companies Investing in Reliance Jio
Facebook investment in Jio attracts the cameras of reporters towards Jio. And after that Vista equity’s investment adds fuel to the fire and steals the despite Covid-19. Now two other firms are planning to invest in Reliance Jio as per the recent update.
The digital unit worth 65 billion, which was controlled by Mukesh Ambani controlled reliance industries attracting companies from Saudi Arabia and the USA.
General Atlantic, USA’s private equity firm was planning to invest around $850 million to $950 million in the Reliance Jio, as per the Bloomberg report. The deal has been expected to complete by this month. But there is no agreement signed till now, which implies that there will be some minimal possibilities in the change of plan.
Another company considering the buying of stakes in Reliance Jio is Saudi Arabia’s public investment fund(PIF), which is planning to buy a minority stake
However, the neglection of General Atlantic to comment on the buy which was due to the neglection of Jio and PIF’s immediate response in commenting to the Reuters request.
As mentioned earlier, Vista equity partners bought stakes of $1.5 billion stakes in Jio, which was officially announced by Reliance industries before an hour of this new deal speculations.
Before this Facebook signed a deal of 9.99 percentage stake in Reliance Jio which is $5.7 billion (INR 43574 crore) on 22nd April 2020. And immediately after few days, Silver Lake a private equity firm invested $750 million in the company.
These three deals summed up to $8 billion injections in the Reliance Industries, a telecom-to-energy group, which paved the way to meet its debts
As per Mukesh Ambani, the Vistas investment increased the Reliance Jio’s equity value to INR 6500 crore as well as the enterprise value to INR 51600 crore.
This shows some positive signs in the recovery of the Indian economy after the crisis.
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