Public Investment Fund, the world’s biggest sovereign wealth fund of Saudi Arabia, will invest Rs. 11,367 crore to gain 2.32 equity stake in Jio platforms. This is the eleventh investment in RIL’s subsidiary within nine weeks, the company announced in its release.
Reliance’s subsidiary Jio has now given away around 24.7 percent stake and raised Rs. 115,693.95 crore from prominent global investors. Earlier, the company received its first investment by Facebook for Rs. 43,574 crore. Following, companies such as Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, and L Catterton also lined up to invest in Jio.
“We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms. I have greatly admired the defining role PIF has played in driving the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Jio Platforms and look forward to their sustained support and guidance as we take ambitious steps to accelerate India’s digital transformation for enriching and empowering the lives of 1.3 billion Indians,” said Mukesh Ambani, Chairman and Managing Director of RIL, in the release.
The company also mentioned that this investment now values Jio platforms at an equity value of Rs. 4.91 lakh crore along with enterprise value of Rs. 5.16 lakh crore.
“We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth. This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia’s economy and our country’s citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom,” said Governor of PIF, His Excellency Yasir Al-Rumayyan, as mentioned in the release by RIL.
The multinational also stated that the transaction is subject to Indian regulatory and other customary approvals.