New York-headquartered private equity firm General Atlantic will invest Rs. 6,598.38 crore ($870 million) in Jio Platforms for a 1.34% fully diluted stake.
In a regulatory filings on Sunday, Reliance Industries, the holding company of Jio Platforms, said, “This investment values Jio Platforms at an equity value of Rs. 4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore. General Atlantic investment will translate into a 1.34% equity stake in Jio Platforms on a fully diluted basis.”
General Atlantic is the fourth external investor to invest in Jio platforms in less than four weeks.
In a largest FDI investment in the technology sector in India, Social media giant Facebook acquired a 9.9% stake in the Indian telecom giant for Rs 43,574 crore. It was followed by an investment of Rs. 5,655.75 crore by private equity firm Silver Lake Partners for 1.15% stake in Jio Platforms on May 4. On May 8, global investment firm Vista Equity had picked up a 2.32% stake on a fully diluted basis for Rs 11,637 crore.
Commenting on the General Atlantic investment, Reliance Industries Chairman Mukesh Ambani said, “I have known General Atlantic for several decades and greatly admired it for its belief in India’s huge growth potential.”
Reliance Jio Director and Mukhesh Ambani’s son, Akash Ambani also commented that, “Jio is committed to make a digitally inclusive India that will provide immense opportunities to every Indian citizen especially to our highly talented youth. General Atlantic’s endorsement and partnership energises Jio’s young team to set, and achieve, even more ambitious goals in our onward March.”
The statement also quoted Bill Ford, CEO-General Atlantic as saying, “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,”
Established in 1980, General Atlantic is a leading growth equity firm with a 40 year track record of investing in the technology, consumer, financial services and healthcare sectors.
It has a longstanding tradition of investing in disruptive companies around the world including Airbnb, Alibaba, Uber, Snapchat, Box, Byte Dance, Ant Financial, Facebook, Slack and other global technology giants.
The General Atlantic-Jio Platform 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. Paul, Weiss, Rifkind, Wharton & Garrison and Shardul Amarchand Mangaldas & Co. acted as legal counsel to General Atlantic.