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KKR to pick 2.32% stake in Jio Platforms for Rs. 11,367 crore

Private equity firm KKR will invest Rs. 11,367 crore ($1.5 billion) in Jio Platforms for a 2.32 per cent stake. 

In a press release, Reliance Industries, the holding company of Jio Platforms on Friday said, “This transaction values Jio Platforms at an equity value of Rs. 4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore. This is KKR’s largest investment in Asia and will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis.” 

KKR is the fifth external investor to invest in Jio platforms in less than a month. In a largest FDI investment in the technology sector in India, Social media giant Facebook on April 22 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. The aggregate of all investments into Jio Platforms stands at Rs. 78,562 crore.

Jio Platforms, a wholly-owned subsidiary of Reliance Industries, a technology platform focused on providing high-quality and affordable digital services across India, has more than 388 million subscribers. 

“KKR shares our ambitious goal of building a premier Digital Society in India. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years,” Mukesh Ambani, Chairman and Managing Director of Reliance Industries was quoted in the statement. 

“We are looking forward to leveraging KKR’s global platform, industry knowledge and operational expertise to further grow Jio,” he added. 

Founded in 1976, KKR has a long history of building leading global enterprises and successfully investing in businesses in the technology sector, including BMC Software, ByteDance and GoJek through its private equity and technology growth funds. Since inception, the firm has invested over $30 billion (total enterprise value) in tech companies, and today the firm’s technology portfolio has more than 20 companies across the Technology, Media and Telecom sectors.

“We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific,” Henry Kravis, Co-Founder and Co-CEO of KKR was quoted in the release. 

KKR is making the investment from its Asia private equity and growth technology funds. 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. Deloitte Touche Tohmatsu India LLP acted as financial advisor to KKR. Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP acted as legal counsel to KKR.

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