ADIA to invest Rs 5,683.50 crore in Jio platforms

With this, Jio has raised Rs 97,885.65 crore in 2 months

Abu Dhabi Investment Authority (ADIA) will be investing Rs 5,683.50 crore in Jio Platforms Limited, a subsidiary of Reliance Industries Limited for a 1.15 per cent stake in the telecom service provider.

The deal, which values Jio Platforms at an enterprise value of Rs 5.16 lakh crore, is now subject to regulatory approvals.

With this deal, which is sixth since April, Jio Platforms has been able to raise an astounding Rs 97,885.65 crore ($13 billion) during the pandemic time when most of the financial markets are witnessing a freeze.

Previously, Jio Platforms has signed seven deals with global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, and Mubadala.

Interestingly, ADIA is a UAE-based sovereign wealth fund (SWF), just like Mubadala, which will be investing Rs 9,093.60 crore in Mukesh Ambani led Jio Platforms for 1.85 per cent stake.

With assets under management of over $1 trillion, Mubadala Investment Company and ADIA, among others, is a part of the world's second-largest second-largest sovereign wealth fund.

Both SWFs have also valued Jio Platforms at the same enterprise value -- Rs 5.16 lakh crore.

Including the recently-concluded rights issue, RIL, at the group level has raised Rs 1.82 lakh crore ($25 billion), during the two months of pandemic itself.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities. This investment is a strong endorsement of our strategy and India’s potential.”

Global investment bank Morgan Stanley acted as financial advisor to Reliance Industries for the deal and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel.