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Jio-ADIA Deal: Abu Dhabi Investment Authority buys 1.16% Stake In Reliance Jio Platforms; Check Details

Jio Investment deal: Abu Dhabi Investment Authority (ADIA) gets 1.16% stake in Reliance Jio Platforms through an investment of Rs 5,683.50 crore. Get here details of the Jio-ADIA deal.

Jun 8, 2020 18:02 IST
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Reliance Jio has entered into another investment deal with Abu Dhabi Investment Authority (ADIA). The UAE-based ADIA has bagged 1.16% stake in Jio platforms through an investment of Rs 5,683.50 crore. The deal comes just three days after Abu Dhabi based Mubadala Investment Company took 1.85% stake in Jio platforms.

Morgan Stanley provided the financial advice to Reliance Industries to carry it this deal with ADIA and AZB & Partners and Davis Polk & Wardwell provided the legal counsel. ADIA is the seventh investor to bag equity stake in Reliance Jio in last seven weeks.

This ADIA investment takes Jio Platform’s total fundraise to Rs 97,885.65 crore after the investment from investors like Facebook, General Atlantic, Silver Lake, Vista Equity Partners, KKR and Mubadala. ADIA has earlier invested in various Indian companies including LIC Housing, ICICI Bank, Jindal Stainless, Escorts LT, and Infosys.

The investment places Jio Platforms at an equity value of Rs 4.91 lakh crore and Rs 5.16 lakh crore enterprise value.

Objective behind Jio's Fundraise

Reliance Jio has raise Rs 97,885.65 crore from stake sales and Rs 53,124 crore from rights issue so far. The fundraise will help Reliance consolidate its net debt. In March 2020, Reliance's net debt stood at Rs 1.61 lakh crore. Mukesh Ambani-led Reliance Industries has targeted to achieve zero net-debt by March 2021.

Other potential investors

As per media sources, various other investors are expected to join this fundraising spree and invest in Jio platforms including the Microsoft and Saudi Arabia’s Public Investment Fund (PIF).

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