A woman rides her scooter past advertisements of Reliance Industries’ Jio telecoms unit in Ahmedabad. (REUTERS)
This is the third high profile-investment in Reliance Jio in as many weeks.
- News18.com
- Last Updated: May 8, 2020, 7:57 AM IST
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Reliance Jio, the telecom unit of Reliance Industries Ltd (RIL), has sold a 2.3 per cent stake to Vista Equity Partners, a US-based private equity firm that runs the world’s largest exclusively tech-focused fund, for Rs 11,367 crore.
Vista’s investment is at an 12.5 percent premium over the Facebook deal announced in April. The deal puts Jio Platforms’ equity value at Rs 4.91 lakh crore and an enterprise value at Rs 5.16 lakh crore.
This is the third high profile-investment in Reliance Jio in as many weeks, after Facebook acquired a minority 9.9 per cent stake for Rs 43,534 crore and Silver Lake invested 5655 crore for a stake of 1.5 per cent.
The investment by Silver Lake Partners in Jio announced earlier this week was also at a similar premium to the Facebook deal.
Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks as the company looks to pare its debt.
Vista has a track record of investing in cutting edge tech companies in their early stage, and each of its investments have been profitable in its history of 10 years. This is Vista’s first sizable investment in India.
This reaffirms Jio as a strong tech-enterprise focused on one of the most exciting and large markets in the world and emphasises the quality of management, RIL said.
