India’s Reliance Jio Platforms to sell 11,367 crore stake to Saudi Arabia’s Public Investment Fund

Saudi Arabia’s PIF to invest Rs 11,367 crore (2.32 % stake) in Jio Platforms 

Mumbai: One of the world’s largest sovereign wealth funds, Saudi Arabia’s Public Investment Fund said it will invest $1.5 billion in Jio Platforms for a 2.32% stake in the top Indian telecom operator on Thursday.

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.

With this deal, Jio Platforms, which is India’s largest telecom operator with more than 388 million subscribers, has secured $15.2 billion from 10 investors, including social media giant facebook, in the past nine weeks by selling a 24.7% stake in its business.

This is an unprecedented eleventh investment in Jio Platforms within nine weeks since April 22 this year.

At Rs 115,693.95 crore, it is the largest continuous funds raised by a company anywhere in the world and was done amidst a global lock-down, “clearly signifying India’s digital potential and Jio’s business strategy”.

In a statement, Yasir Al-Rumayyan, governor of PIF, said, “We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth. This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia’s economy and our country’s citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom.”


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