Mukesh Ambani has made an announcement for Reliance Jio. It has raised Rs 5,683.50 crore ($750 million) from Abu Dhabi Investment Authority (ADIA) by diluting a 1.16% stake. This deal has inked with valuation alike the other recent private equity investments in Jio. Although equity valuation equated at Rs 4.91 lakh crore, the telecom’s enterprise valuation is almost Rs 5.16 lakh crore.
In three days, Reliance Industries’ digital unit has acquired this as its 3rd investment. On 5th June, the sovereign fund of Abu Dhabi, Mubadala Investment Company, had invested Rs 9093.6 crore in Jio for 1.85% stake. Also, Silver Lake and its co-investors pumped in an amount of Rs 4,546.80 crore, in addition, to 0.93% stake on the same day.
Now, a total investment of Rs 97,885.65 crore was secured by Jio from seven large global investors against a 21.06% stake. The debt of Reliance Industries Limited is amounted to around Rs 1,450 crore in FY19. These investments would now be an aid to reduce the company’s debt.
The fundraising fete for Jio began on April 22 when Facebook acquired a 9.9% stake in it for Rs 43,574 crore. This was followed by Vista Equity, General Atlantic, KKR, Silver Lake, Mubadala, and Abu Dhabi Investment Authority to raise capital by the Mumbai-based firm.
For information, Abu Dhabi Investment Authority is a sovereign wealth fund of the Abu Dhabi emirate of the United Arab Emirates. It has assets of nearly $700 billion. JioMart has been launched by Reliance last month for several cities across India and expected to overtake Bigbasket and Grofers in the online grocery delivery service in India.
