Reliance AGM: Google to invest Rs 33,737 crore for 7.7% stake in Jio Platforms, says Mukesh Ambani
Investors from across the world, including Facebook and KKR, have already put in $15.64 billion (roughly Rs 1.17 lakh crore) for just over 25% in Jio Platforms.Updated: Jul 15, 2020 15:07 IST
Search engine giant Google will buy a 7.7% stake in Reliance Industries Limited’s Jio Platforms for Rs 33,737 crore, in the second investment by a US tech company after Facebook Inc, RIL’s chairperson and managing director Mukesh Ambani said on Wednesday.
“We are delighted to welcome Google as a strategic investor in Jio Platforms. We have signed a binding partnership and an investment agreement under which Google will invest Rs 33,737 crore for a 7.7% stake in Jio Platforms,” Ambani said at the company’s annual general meeting (AGM).
Mukesh Ambani, world’s sixth-richest person, said this takes the cumulative fundraising by Reliance in less than three months to Rs 212,809 crore.
Before this, investors from across the world, including Facebook and KKR, have already put in $15.64 billion (roughly Rs 1.17 lakh crore) for just over 25% in RIL’s digital arm Jio Platforms.
This includes Rs 53,124 crore rights issue and investment by BP in fuel retailing venture.
“It is in excess of our net debt of Rs 1,61,035 crore at the end of FY19-20,” he said.
“Reliance is now truly a zero net debt company, well ahead of my goal of March 2021. It has an extremely strong Balance Sheet that will support growth plans for its three hyper-growth engines—Jio, Retail and O2C,” he said.
“Reliance has concluded its JV with BP in the existing fuel retailing business. BP has invested Rs 7,629 crore for their 49 per cent stake in the JV,” he said.
Google also said it would spend around $10 billion (roughly Rs 75,000 crore) in India over the next five to seven years through equity investments and tie-ups, in its biggest commitment to a key growth market.
RIL is holding its 43rd AGM virtually for the first time amid the ongoing coronavirus pandemic with shareholders from 500 locations in India and abroad joining in.