Now, ADIA arm invests ₹5,683 crore in Jio Platforms
Reliance Industries Ltd Sunday said a unit of Abu Dhabi Investment Authority (ADIA) has invested ₹5,683.50 crore in Jio Platforms Ltd, taking the total capital-raising by its digital services subsidiary to around ₹1 lakh crore in just seven weeks.
The investment by an undisclosed wholly-owned subsidiary of ADIA, valuing Jio Platforms at ₹4.91 lakh crore, comes just two days after RIL announced two large investments by foreign investors adding up yo ₹13,640.4 crore in Jio Platforms.
Mukesh Ambani, chairman and managing director of RIL said in a statement, “I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities. This investment is a strong endorsement of our strategy and India’s potential.”
With this investment, Jio Platforms has raised ₹97,885.65 crore from seven marquee global investors.
On Friday, Abu Dhabi-based Mubadala Investment Co. bought a 1.85% stake in Jio Platforms for ₹.9,093.60 crore. Later in the day, RIL said Silver Lake, which had earlier invested ₹5,655.75 crore in Jio Platforms on May 4, has committed to invest an additional ₹4,546.80 crore, along with its co-investors, bringing its aggregate investment to ₹10,202.55 crore, for a 2.08% stake.
Jio Platforms has been on a capital-raising spree since April end. Starting with Facebook’s ₹43,574 crore investment in April, Jio Platforms has sold stakes to private equity firms KKR & Co., Silver Lake, Vista Equity Partners, General Atlantic, Mubadala and now ADIA.
The latest investment will fetch ADIA a 1.16% stake in Jio Platforms on a fully diluted basis, RIL said.
ADIA is a globally-diversified investment institution which invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation. It has a number of investments in India, mostly through its private equities department.
Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA, said: “Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socioeconomic developments and the transformative effects of technology on the way people live and work. The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution. Our investment in Jio is a further demonstration of ADIA’s ability to draw on deep regional and sector expertise to invest globally in market leading companies and alongside proven partners.”
Jio Platforms, with 388 million subscribers, combines all of RIL’s digital and telecom initiatives, including Jio digital services, mobile and broadband, apps, tech capabilities such as artificial intelligence, Big Data, and Internet of Things, and other investments such as in Den Networks, Hathway Cable, and Datacom Ltd.
The platforms company has attracted investments of around $13 billion for a sale of over 20% stake in a short span of time.