Reliance Industries Ltd (RIL), controlled by billionaire Mukesh Ambani, will be completely debt free by the end of this calendar year if companies continue to buy stake in the Jio platform. The company is working with a plan to raise a total of -1.62 lakh crore by December. The net debt of the company as on 31 March 2020 was Rs 1,61,035 crore. Reliance Industries has so far entered into deals to sell around 20 per cent of the total stake, bringing the company to a total of Rs 92,202 crore.
Also read: Reliance Industry becomes the country’s largest company with a market cap of 10 lakh crores
The company said in a statement that private investment company Silver Lake has made a new investment of Rs 4,546.80 crore in exchange for an additional 0.93 per cent stake in its digital entity Jio Platforms. Reliance Industries said that the total investment made by Silver Lake in the Jio platforms now stands at 10,202.55 crores. Silver Lake had earlier invested Rs 5,655.75 crore in Jio Platforms on May 4 for a 1.15 per cent stake. Silverlake’s total stake has now increased to 2.08 percent.
Mubadla to buy 1.85 percent stake for Rs 9,093.60 crore
Abu Dhabi-based investment company Mubadla is buying a 1.85 percent stake for Rs 9,093.60 crore. Reliance said, “Mubadla Investment Company (Mubadla) will invest Rs 9,093.60 crore in the Jio platform. For this, the equity value is Rs 4.91 lakh crore and the value of the enterprise is Rs 5.16 lakh crore. With this investment, Jio Platforms has raised Rs 92,202.15 crore from major global technology investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR and Mubadala in less than six weeks. Reliance Industries is going to use this amount to repay the debt.
Silver Lake bought 9.99% stake for Rs 43,574 crore
On April 22, Facebook bought a 9.99 percent stake in Jio Platforms for Rs 43,574 crore. A few days after the deal, Silver Lake, the world’s largest technology investor, bought a 1.15 percent stake in Jio Platforms for Rs 5,665.75 crore.
Vista Equity Partners bought 2.32% stake for 11,367 crores
Subsequently, US-based Vista Equity Partners bought a 2.32 percent stake in Jio Platforms for Rs 11,367 crore on 8 May. Global equity firm General Atlantic acquired 1.34 percent stake in the company on May 17 for Rs 6,598.38 crore. Subsequently, American equity investor KKR bought a 2.32 percent stake for Rs 11,367 crore. Let us tell you that Jio Platforms, a wholly owned subsidiary of Reliance Industries Limited, is a technology company. Reliance Jio Infocomm Limited, which has 388 million mobile subscribers, will remain a wholly owned subsidiary of Jio Platforms.