L Catterton, one of the world’s largest consumer focused private equity firms and US-based private equity firm TPG will invest Rs. 1,894.50 crore and Rs. 4,546.80 crore respectively in Reliance Industries’ subsidiary Jio Platforms.
Reliance Industries on Saturday announced the exchanges about these equity infusions.
Through this investment, L Catterton will pick 0.39 per cent equity stake in Jio Platforms on a fully diluted basis while TPG’s investment will entitle it to 0.93 per cent equity stake in the digital platform.
L Catterton investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of ₹ 5.16 lakh crore and TPG investment values at an equity value of Rs. 5.16 lakh crore.
TPG is making the investment from its TPG Capital Asia, TPG Growth, and TPG Tech Adjacencies (TTAD) funds.
With these investments, Jio Platforms has raised Rs. 1,04,326.95 crore (22.38 per cent) from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton since April 22, 2020 in less than eight weeks.
The investment from some of the leading global investment powerhouses assumes significance since it comes at a time when the world is deeply impacted by the Covid-19 pandemic resulting in a recession kind of environment for the global economy.
“I particularly look forward to gaining from L Catterton’s invaluable experience in creating consumer-centric businesses because technology and consumer experience need to work together to propel India to achieving digital leadership,” Mukesh Ambani, Chairman and Managing Director of Reliance Industries said while commenting on L Catterton investment.
On TPG’s investment, Ambani said, “We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better.”
Michael Chu, Global Co-CEO of L Catterton said, “We look forward to partnering with Jio, which is uniquely positioned to execute on its vision and mission to transform the country and build a digital society for 1.3 billion Indians through its unmatched digital and technological capabilities.”
Jim Coulter, Co-CEO of TPG, said, “As an investor in growth, change, and innovation for over 25 years – and with a longstanding presence in India — we are excited to play an early role in Jio’s journey as they continue to transform and advance India’s digital economy. Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come.”
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.
Shardul Amarchand Mangaldas & Co. acted as legal counsel for TPG