Reliance Industries on Friday announced that Abu Dhabi-based sovereign investor Mubadala Investment Company will invest Rs. 9,093.60 crore to acquire 1.85 per cent equity stake in its subsidiary – Jio Platforms on a fully diluted basis.
This is the sixth fundraising by Jio Platforms within a span of six weeks. In a series of fundraising starting from April 22, Jio Platforms has raised Rs. 87,655.35 crore from leading global technology and growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR and Mubadala.
In a regulatory filing, the company said, “Reliance Industries and Jio Platforms announced today that Mubadala, an Abu Dhabi-based sovereign investor, will invest Rs. 9,093.60 crore in Jio Platforms at an equity value of Rs.4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore.”
Jio Platforms is a wholly-owned subsidiary of Reliance Industries. The technology platform currently has more than 388 million subscribers.
“I am delighted that Mubadala..has decided to partner us in our journey to propel India’s digital growth towards becoming a leading DIGITAL NATION in the world,” Mukesh Ambani, Chairman and Managing Director of Reliance Industries was quoted in the statement.
“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,” he added.
Abu Dhabi-based Mubadala Investment Company manages a global portfolio of $229 billion portfolio spanning across five continents with interests in sectors including aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, healthcare and real estate.
Mubadala has offices in Rio de Janeiro, Moscow, New York and San Francisco, with a joint venture in Hong Kong.
“We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India’s digital growth journey,” Khaldoon Al Mubarak, MD and Group CEO, Mubadala Investment Company was quoted in the release.
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel.