The logo of Reliance Jio, the mobile network of Reliance Industries Ltd., is displayed at a store in Mumbai, India, on Sunday, Jan. 19, 2020. Reliance Industries, India's biggest company by market value, posted a 13.5% jump in quarterly net income as growth in telecom and retail business helped outweigh a slump in petrochemical operations. Photographer: Dhiraj Singh/Bloomberg

Investment To Further Assist JIO in Building An Inclusive Technology Growth Platfroms For Indian Consumers

JIO Platforms Raises Rs 115,693.95 Crore Through Partnership With Leading Global Investors Within Nine Weeks

Mumbai, The NFAPost: Reliance Industries Limited (“Reliance Industries”) and Jio Platforms Limited (“Jio Platforms”), India’s leading digital services platform, announced an investment of Rs 11,367 crore by The Public Investment Fund (“PIF”).

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. PIF’s investment will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis.

Decades of relation

With this investment, Jio Platforms has raised Rs 115,693.95 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton, since April 2020.

Commenting on the investment, Reliance Industries Chairman and Managing Director Mukesh Ambani said Reliance had enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades.

“From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms. I have greatly admired the defining role PIF has played in driving the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Jio Platforms and look forward to their sustained support and guidance as we take ambitious steps to accelerate India’s digital transformation for enriching and empowering the lives of 1.3 billion Indians,” said Reliance Industries Chairman and Managing Director Mukesh Ambani.

With the addition of PIF’s investment, Jio Platforms has established partnerships with a marquee set of global financial investors, who will contribute to establishing the Digital Society vision for India.

Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology company focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers. Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain. Jio Platforms’ vision is to enable a Digital India for 1.3 billion people and businesses across the country, including small merchants, microbusinesses and farmers, so that all of them can enjoy the fruits of inclusive growth.

PIF is the sovereign wealth fund of Saudi Arabia and as part of its mandate to diversify its economy, has made its largest investment into the Indian economy to-date. This investment is in line with PIF’s strategy and mandate of investing in sectors and companies that generate long-term commercial returns to drive Saudi Arabia’s economic transformation as part of Vision 2030 objectives. This investment supports PIF’s mandate of building strong global investment partnerships to further Saudi Arabia’s investment reach and exposure.

Innovative Business

Expressing happiness on the investment, PIF Governor His Excellency Yasir Al-Rumayyan said the company is 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,” said PIF Governor His Excellency Yasir Al-Rumayyan.

The transaction is subject to Indian regulatory and other customary approvals.Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.

The Public Investment Fund (“PIF”) is one of the largest and most impactful sovereign wealth funds in the world, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia. PIF is
building a world-class, diversified portfolio through investments in attractive, long-term opportunities across sectors and asset classes at both the domestic and international level.

Working alongside global strategic partners and renowned investment managers, PIF acts as the Kingdom of Saudi Arabia’s main investment arm to deliver a strategy focused on achieving attractive financial returns and long-term value for the Kingdom of Saudi Arabia, in line with Vision 2030.

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