Silver Lake, Abu Dhabi’s Mubadala To Invest Rs 13,640 Crore in Jio

Jio Platforms is selling a 1.85 percent stake to Mubadala and 0.93 percent stake to Silver Lake and its partners.

Reliance Jio Platforms is selling 1.85 percent to Abu Dhabi’s Mubadala and 0.93 percent stake to US investor Silver Lake and its partners.

Photo: The Quint

Reliance Jio Platforms has just announced a fresh round of investments it is getting from US private equity player Silver Lake and its co-investors and from Mubadala, an Abu Dhabi-based sovereign investment. The combined fresh investments from these investors in Jio Platforms is over Rs 13,640 crore.

Jio Platforms is selling a 1.85 percent stake to Mubadala for Rs 9,093.6 crore rupees, according to a report in The Economic Times. In addition to this, Silver Lake Partners announced it was putting in another Rs 4,546.8 crore in Jio Platforms for a 0.93 percent stake.

In early May 2020, Silver Lake had invested Rs 5,655.75 crore in Jio Platforms for a 1.15 percent stake. The fresh additional investment takes its stake share to 2.08 percent, valuing Jio at an enterprise value of Rs 5.16 lakh crore.

With fresh investments, Jio Platforms has an equity value of Rs 4.91 lakh crore.

So far Jio Platforms has got investments from Facebook, General Atlantic, KKR, Vista Equity Partners, Silver Lake, and Mubadala. In addition to this, it closed a rights issue last week raising Rs 53,124 crore. Jio Platforms is expected to go for an initial public offering (IPO) in two years' time.

The Abu Dhabi-based sovereign investment firm Mubadala has $229 billion of assets under management. In partnership with Softbank, it has invested in many Silicon Valley technology firms including AMD.

The biggest investment in Jio so far has come from Facebook, which forked out Rs 43,574 crore for a 9.99 percent stake. With the additional investments, Jio is said to have already crossed its fund-raising targets.

Reliance Jio has sold 19.9 percent stake in total to six investors.

Reliance Industries Limited reported a consolidated turnover of Rs 6,59,205 crore ($87.1 billion), cash profit of Rs 71,446 crore ($9.4 billion), and net profit of Rs 39,880 crore ($5.3 billion) for the first quarter of this year.