Reliance Industries on Sunday announced yet another investment detail. The Abu Dhabi Investment Authority (ADIA) will buy a 1.16% stake in its digital unit Jio Platforms for ₹5,683.50 crores ($752 million) said the company. This has helped the oil-to-telecom conglomerate to raise ₹97885.65 crores to help cut-off its debts.
Abu Dhabi Investment Authority investment in Jio Platforms gives the unit an enterprise value of ₹5,16,000 crores, Reliance said in a regulatory filing. Jio platforms comprise Reliance’s telecom wing, Jio Infocom, and its audio and video streaming apps.
Reliance Industries Chairman Mukesh Ambani has now sold just over 21% of Jio Platforms to investors including Facebook, securing nearly $13 billion (₹97,885.65 crores in Indian currency) in less than seven weeks.
On Friday, Abu Dhabi’s state fund Mubadala Investment also announced that it would purchase a 1.85% stake in Jio Platforms for ₹9,093 crores.
“The rapid growth of the (Jio) business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution,” Hamad Shahwan Aldhaheri, executive director in ADIA’s private equities department, said in a statement.
With estimated assets of about $700 billion (roughly ₹52.89 lakh crores), The President of the United Arab Emirates, Sheikh Khalifa bin Zayed al-Nahyan is the Chairman of the ADIA which has estimated assets of nearly $700 billion (roughly ₹52.89 lakh crores). Sheikh Mohammed bin Zayed al-Nahyan Abu Dhabi’s crowned Prince is the deputy chairman of the company.
Talking about Reliance Jio, it is India’s biggest telecom company with a huge user base of more than 376 million subscribers. Since entering the market in 2016 with free voice service and cut-price data, Jio has revolutionized the telecom sector in India. It has forced out several rivals and driving consolidation in the sector.
Mukesh Ambani has always pitched Jio as a tech company instead of a traditional telecom company, often saying publicly that “data is the new oil”. He has envisioned the company will be offering IoT and connected devices to build a whole ecosystem of smart homes.
The company has managed to attract diversified investments from all around the globe and is committed to becoming a debt-free entity.
That is all in this one. Stay tuned for latest Technology news and updates.