Abu Dhabi based sovereign investor Mubadala Investment Company will inject Rs 9,093.6 crore in Jio Platforms in exchange for 1.85% equity stake, the sixth investment in Jio Platforms in as many weeks.

The investment by Mubadala, which manages about $229 billion in assets, at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore takes the total amount raised by RIL Digital Unit to an eye-popping Rs 87,655.35 crore, according to a statement by RIL.

“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,” Mukesh Ambani, chairman and Managing Director of Reliance Industries, said in a statement. “Through my longstanding 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”, he added.

Reliance’s stake sales will help it achieve its zero-net debt ahead of the March 2021 target. At the end of last March, Reliance had outstanding debt of Rs 3.36 lakh crore and cash of Rs 1.75 lakh crore, bringing its net debt to Rs 1.61 lakh crore. Parent RIL also raised Rs 53,124 crore from a rights issue, which closed on Wednesday and received a robust response from shareholders as the issue got subscribed 1.59 times.

Jio Platforms, which runs movie, news and music apps as well as the telecom enterprise Jio Infocomm, has now sold a combined stake of 18.97% in six massive fundraising deals. The series of deals was led by Facebook Inc, which invested Rs 43,574 crore to buy 9.99% on April 22.  Since then, General Atlantic, Silver Lake, Vista Equity Partners and KKR together spent Rs 78,562 crore on Jio.

The deals clearly show the status of Jio Platforms as a tech powerhouse and its ability to dominate India’s booming digital economy. Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.

Jio Infocomm is India’s biggest telecom player, amassing more than 388 million subscribers since its launch in late 2016. 

These deals are coming in on the run up to an IPO for Jio, expected in two years. Reliance has consistently talked about building Jio Platforms into a digital entity on the lines of Alphabet and Tencent and list it overseas.
 
Reliance is also in talks with Saudi Aramco for selling a fifth of its oil-to-chemicals business in a $15 billion deal and has sold half its fuel retail venture to BP Plc for Rs 7,000 crore, apart from its telecommunication tower business to Brookfield for Rs 25,200 crore. The sharp drop in global oil prices this year and demand compression in most global economies could make an Aramco deal difficult, some analysts said. The Brookfield transaction is yet to receive government clearance.
 
Khaldoon Al Mubarak, managing director and group CEO, Mubadala Investment Company, said his company is committed to investing in, and actively working with, high-growth companies that 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."

After Abu Dhabi Investment Authority, Mubadala is billed as the second-biggest state investor. The investor has more than 50 businesses and investments in more than 50 countries.

Mubadala typically makes investments in enterprises that create lasting value and positive economic and social impact in communities at home and overseas, according to its website. Its portfolio companies are spread in sectors such as aerospace, agribusiness, ICT, semiconductors, metals and mining, pharmaceutical and medical technology, renewable energy and utilities. It also manages diverse financial holdings.

Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel.

The transaction is subject to regulatory and other customary approvals.