Reliance Industries led by Mukesh Ambani announced that the Abu Dhabi-based sovereign investor, Mubadala Investment Company will invest Rs. 9,093.60 Cr in Jio for a 1.85% equity stake. The investment amounts to an equity value of Rs. 4.91 Lakh Cr and an enterprise value of Rs. 5.16 Lakh Cr.
Morgan Stanley was the financial advisor to Reliance Industries along with AZB & Partners, and Davis Polk & Wardwell as legal counsel. Khaldoon Al Mubarak, managing director, and group CEO, Mubadala Investment Company, proclaimed,
“We are dedicated to invest in and work actively with high growth companies that are pioneering technologies to look after the critical challenges and fight back the new opportunities. We have tracked how Jio transformed communications and addressed connectivity issues in India, and we, the investor and partner are committed to supporting India’s digital growth movement.”
With the following investment, Jio has raised about Rs. 87,655.35 Cr from investors all over the Globe such as Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, and Mubadala all within six weeks.
Abu Dhabi’s Mubadala has made various investments covering more than 50 nations. It has made investments in different sectors like aerospace, information and communications technology, real estate and infrastructure, petroleum and petrochemicals, healthcare, renewables, utilities, semiconductors, metal, and mining. It has 5 offices across the globe and possesses assets under management worth $229. It is also one of the limited partners in SoftBank’s Vision Fund which currently were in losses of over $17.7 Billion. The WeWork controversy has led to such devaluation and losses in the same.
Jio Platforms is the umbrella company of Reliance for providing services like Reliance Jio, Jio Fiber, MyJio, JioTV, JioCinema, Jio Mart JioNews, and JioSaavn. Comprehensive digitalization is very important for the growth of the Indian economy as asserted by Mukesh Ambani. The company has made significant investments in digital ecosystems, broadband connections, cloud computing, smart devices, artificial intelligence.