Jio sells 1.34% stake to General Atlantic for ₹6,600 crores
Reliance Industries’ digital unit, Jio bags 4 new investments in 4 weeks. The latest is a sale of 1.34% stake which was bought by General Atlantic, a US investment fund for ₹6,600 crores.
General Atlantic also owns a stake in international companies like Airbnb Inc. and Uber Technologies Inc. “As an integrated team operating under a global investment platform across 14 locations, General Atlantic invests behind themes that are driven by innovation and entrepreneurship and supported by long-term secular growth,” said RIL in a statement.
By way of selling its stake, Jio has raised over ₹67,000 crores in four deals. Earlier, global giants such as Facebook, Silver Lake, and Vista have invested ₹43,574 crores, ₹5,656 crores, and ₹11,367 crores. It has led to a dilution of 14.8% of the company’s stake.
Bill Ford, CEO of General Atlantic said, “As long-term backers of global technology leaders and visionary entrepreneurs, we could not be more excited about investing in Jio. We share Mukesh’s conviction that digital connectivity has the potential to significantly accelerate the Indian economy and drive growth across the country. General Atlantic has a long track record working alongside founders to scale disruptive businesses, as Jio is doing at the forefront of the digital revolution in India.”
Mukesh Ambani, chairman and managing director of Reliance Industries has set early 2021 as his target to reach a zero net debt position. All past sales of stake, including the General Atlantic deal, have helped him reach closer to this target. The current net debt of RIL stands at ₹1.53 lakh crore as of December 2019.