Jio strikes deal with TPG, Catterton; Raises Rs 1.04 lakh crore in 8 weeks with 10 deals

Eight weeks, ten deals, and raising an astounding amount of Rs 1.04 lakh crore through a cumulative stake sale of about 22% -- this has been the story of Jio platforms at a time when global markets are in a freeze due to pandemic.

On Saturday, Reliance signed deals with two different companies -- TPG and L Catterton raising Rs 6,441.3 crore by selling a 1.32% stake in Jio Platforms.

Global investor TPG agreed to buy a 0.93% stake in Jio Platforms, a subsidiary of Mukesh Ambani controlled Reliance Industries Limited for a sum of Rs 4,546.80 crore.

On the other hand, private equity firm L Catterton would be buying a 0.39% stake in Jio Platforms for Rs 1,894.50 crore.

With these investments, Jio Platforms has raised Rs 1.04 lakh crore from global technology investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and Catterton since April 22, 2020.

Both deals, which are subject to regulatory approval, have valued Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore -- the same as the valuation marked by Mubadala and ADIA.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said on TPG Deal, “We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better.”

Including the recently concluded rights issue and the BP deal, the Reliance, at the group level has been able to raise Rs 1.64 lakh ($21.9 billion) in the current quarter.

The deals are seen as a part of the deleveraging exercise by the RIL, as it has announced the plan to become a zero net debt company at the end of this financial year. The companies net debt at the end of March 2020, stood at Rs 1.61 lakh crore.

Also, according to the sources, the company will be partially to use these monies to fuel further growth in Jio Platforms, with Mukesh Ambani focussing on data.

Reliance Industries Limited (RIL), formerly used to control 100% of the Jio Platforms Limited. However, after the eight stake sales in eight weeks, RIL now owns about 78% stake in the Jio Platforms, which in turn controls a 100% stake in the Reliance Jio Infocomm -- the country's youngest and largest telecom services provider.