Reliance Jio's seventh deal in six weeks: Silver Lake invests another 4,546 crore

Jio Platforms has raised Rs 92,202 crore in less than six weeks

Chairman of Reliance Industries Limited Mukesh Ambani with wife Neeta Ambani | AP Chairman of Reliance Industries Limited Mukesh Ambani with wife Neeta Ambani | AP

After an initial investment of Rs 5,655 crore in Jio Platforms, private equity firm Silver Lake is investing an additional Rs 4,546 crore for a 2.08 per cent stake overall.

Silver Lake has now invested an aggregate amount of Rs 10,203 crore in Jio Platforms.

The announcement comes on the same day that Reliance received its sixth investment: Selling a 1.85 per cent stake to Adu Dhabi’s Mubadala for Rs 9,093 crore.

According to a press release by Reliance Industries, Silver Lake’s investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore, and will translate into a 2.08% equity stake in Jio Platforms on a fully diluted basis. “With this investment, Jio Platforms has raised ₹ 92,202.15 crore from leading technology investors in less than six weeks,” the release said.

Reliance has so far picked up investments from Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR and Mubadala in less than six weeks.

Facebook picked up 9.99 per cent stake in the firm that houses India's youngest but largest telecom firm on April 22 for Rs 43,574 crore. Within days of that deal, Silver Lake bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore.

On May 8, US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms for Rs 11,367 crore. On May 17, global equity firm General Atlantic picked up 1.34 per cent stake in Jio Platforms for Rs 6,598.38 crore. This was followed by US private equity giant KKR buying 2.32 per cent for Rs 11,367 crore.

Reliance has so far sold 19.9 per cent worth of stake in Jio Platforms.

Jio Platforms has over 388 million subscribers and is India’s largest telecom provider. Silver Lake has approximately $40 billion in combined assets under management. Silver Lake’s other investments include shares and capital in Dell, Skype, Gartner and more.

Commenting on the aggregate investment brought by Silver Lake, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd, said, “Silver Lake and its co-investors are valued partners as we continue to grow and transform the Indian digital ecosystem for the benefit of all Indians. "

Egon Durban, Silver Lake Co-CEO and Managing Partner, said, “We are excited to increase our exposure and bring more of our co-investors into this opportunity, further supporting Jio Platforms in its mission to bring the power of high-quality and affordable digital services to a mass consumer and small businesses population. The investment momentum behind Jio validates a compelling business model and underscores our admiration for Mukesh Ambani, his team and their courageous vision in creating and building one of the world’s most remarkable technology companies.” 

With inputs from PTI