Jio raises Rs 9,093 cr from Mubadala

Mubadala, Abu Dhabi-based sovereign wealth fund, will be investing Rs 9,093.60 crore in Mukesh Ambani led-Jio Platforms for 1.85% stake, valuing Jio Platforms at a whopping Rs ₹5.16 lakh crore.

The deal is now subject to regulatory approvals.

With this deal, which is sixth since April, Jio Platforms have been able to raise an astounding Rs 87,655.35 crore ($11 billion) during the pandemic when most of the financial markets are witnessing a freeze.

Including the just-concluded rights issue, RIL, at the group level has raised Rs 1.72 lakh crore ($23 billion), during the two months of pandemic itself -- a number which is substantially higher than the fiscal cost of India’s stimulus package.

As a result of the deal, RIL shares closed at their 52-week peak of Rs 1,617.70 per scrip, and the market capitalisation reclaimed the Rs 10 lakh crore mark.

The shares closed flat at Rs 1,580.6 at the end of the day.

With assets under management of over $1 trillion, Mubadala Investment Company is a part of the world’s second-largest sovereign wealth fund, along with Abu Dhabi Investment Agency (ADIA) and others.

Prior to this, Jio had got investments from Facebook, Silver Lake, Vista Equity Partners, General Atlantic, and KKR.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries said, “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. We look forward to benefitting from Mubadala’s experience.”

The slew of deals is expected to bring down the net debt of RIL by Rs 1.4 lakh crore.

“RIL’s digital business (JIO Platforms) has attracted investments from marquee investors like Facebook, Silver Lake Partners, General Atlantic, KKR, Vista Equity Partners and Mubadala. The money raised will help the company bring down its debt levels by almost Rs 1.4 lakh crore. Investments also helps increase our confidence in the strategy to transform from a brick and mortar company into a digital play,” Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd said.