Indian oil-to-telecoms conglomerate Reliance Industries mentioned on Friday that Abu Dhabi state fund Mubadala Investment Company will purchase a 1.85 p.c stake in its digital unit, Jio Platforms, for Rs. 9,093.60 crores.
Reliance has now bought a mixed 19 p.c curiosity in Jio Platforms, which homes film, music apps, and telecoms enterprise Jio Infocomm, in six fundraising offers including a 9.99 p.c stake sale to Facebook for Rs. 43,574 crores ($5.7 billion).
“With this investment, Jio Platforms has raised Rs. 87,655.35 crores from leading global technology and growth investors including Facebook, Silver Lake, Vista Equity Partners), General Atlantic, KKR, and Mubadala in lower than six weeks,” the corporate mentioned in an announcement.
The curiosity in Jio Platforms highlights its potential to grow to be the dominant participant in India’s digital economic system. The telecoms unit has already decimated a number of rivals with cut-throat pricing and is relying on Reliance’s retail community to develop into e-commerce.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, mentioned, “I am delighted that Mubadala, one of the most astute and transformational global growth investors has decided to partner us in our journey to propel India’s digital growth towards becoming a leading digital nation in the world. Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala’s work in diversifying and globally connecting the UAE’s knowledge-based economy.”
The Jio Platforms funding is the most important in an Indian agency by Mubadala, which is the second-biggest state investor in Abu Dhabi after Abu Dhabi Investment Authority (ADIA), managing about $240 billion (roughly Rs. 18.08 lakh crores) in property.
Meanwhile, Khaldoon Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, mentioned, “We have seen how Jio has already transformed communications and connectivity in India, and as an investor and partner, we are committed to supporting India’s digital growth journey. With Jio’s network of investors and partners, we believe that the platform company will further the development of the digital economy.”
Morgan Stanley served as a monetary adviser to Reliance Industries, the corporate mentioned in an announcement.
© Thomson Reuters 2020