Jio Platforms raises ₹9\,093.60 crore from Mubadala

Info-tech

Jio Platforms raises ₹9,093.60 crore from Mubadala

Rajesh Kuru Mumbai | Updated on June 05, 2020 Published on June 05, 2020

With this investment, Jio Platforms has raised ₹87,655.35 crore from global technology and growth investors   -  Nagara Gopal

Abu Dhabi-based sovereign investor to pick 1.85% in RIL arm

Continuing its fund-raising spree, Jio Platforms, a subsidiary of Asia's richest man Mukesh Ambani-controlled Reliance Industries Ltd (RIL), has raised ₹ 9,093.60 crore from Abu Dhabi-based sovereign investor Mubadala Investment Company in lieu of a 1.85 per cent stake.

The deal values Jio Platforms at an equity value of ₹4.91-lakh crore and an enterprise value of ₹5.16-lakh crore, RIL said in a statement.

With this investment, Jio Platforms has raised ₹87,655.35 crore from global technology and growth investors such as Facebook, Silver Lake, Vista Equity Partners, General Atlantic and KKR in the past six weeks.

This is the company’s sixth fund-raising since April 22.

“I am delighted that Mubadala, one of the most astute and transformational global growth investors has decided to partner us in our journey to propel India’s digital growth towards becoming a leading Digital Nation in the world. Through my long-standing ties with Abu Dhabi, I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy,” RIL Chairman and Managing Director Mukesh Ambani said.

“We look forward to benefiting from Mubadala’s experience and insights from supporting growth journeys across the world,” he added.

Morgan Stanley was the financial advisor to RIL and AZB & Partners, and Davis Polk & Wardwell were the legal counsels.

“We are committed to investing in, and actively working with, high growth companies which are pioneering technologies to address critical challenges and unlock new opportunities. We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India's digital growth journey. With Jio’s network of investors and partners, we believe that the platform company will further the development of the digital economy,” Khaldoon Al Mubarak, Managing Director and Group CEO of Mubadala Investment Company, said.

With plans to raise funds totalling ₹1.62-lakh crore by December, billionaire Mukesh Ambani-controlled Reliance Industries Ltd (RIL) will emerge net-debt free by the end of this calendar year. This is much ahead of industry and analysts expectations of RIL being debt-free by March 2021.

RIL’s share prices closed up 2.43 per cent at ₹1,579.95 on BSE, taking its market capitalisation to ₹10.01 lakh crore on Thursday.

Published on June 05, 2020

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