US-based private equity firm Vista Equity Partners will invest Rs11,367 crores in Reliance Jio for a 2.32% stake, Reliance Industries Limited (RIL) announced on Friday. This is billionaire Mukesh Ambani’s Reliance digital unit, Jio Platforms' third deal after Facebook and Silver Lake’s share acquisition plans. Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks.
"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. Vista’s investment will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis, making Vista the largest investor in Jio Platforms behind Reliance Industries and Facebook," Reliance Industries said in a statement on Friday.
Facebook had bought 9.99% stake in Jio Platforms — the firm that houses India’s youngest but biggest telecom firm, for Rs 43,574 crore. That deal was followed by Silver Lake — the world’s largest tech investor — buying 1.15% stake in Jio Platforms for Rs 5,665.75 crore.
Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation tech company that brings together Jio’s leading digital apps, digital ecosystems and high speed connectivity platform under one umbrella.
Vista is a leading global investment firm focused on empowering and growing enterprise software, data and technology enabled companies that are reinventing industries and catalyzing change. Vista has more than $57 billion in cumulative capital commitments and its global network of companies collectively represent the 5 th largest enterprise software company in the world.
Currently, Vista portfolio companies have a significant presence in India with over 13,000 employees.
“I am delighted to welcome Vista, one of the world’s marquee tech investors globally as a valued partner. Like our other partners, Vista also shares with us the same vision of continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians,” RIL Chairman and Managing Director Mukesh Ambani said.
Ambani further said “we are excited to leverage the professional expertise and multi-level support that Vista has been offering to its investments globally for the benefit of Jio.”
RIL is India’s largest private sector company, with a consolidated turnover of INR 659,205 crore ($87.1 billion), cash profit of INR 71,446 crore ($9.4 billion), and net profit of INR 39,880 crore ($5.3 billion) for the year ended March 31, 2020.