Saudi Arabia’s PIF to invest Rs. 11,367 crore in Jio Platforms

With Saudi Arabia’s investment, Jio Platforms has raised Rs. 1,15,693.95 crore from the leading global investors that include Silver Lake, Facebook, General Atlantic, Vista Equity Partners, KKR, Mubadala, ADIA, L Catterton, and TPG.

Created On: Jun 18, 2020 18:59 IST
Saudi PIF Investment in Jio Platforms
Saudi PIF Investment in Jio Platforms

Jio Platforms and Reliance Industries on June 18 announced an investment of Rs. 11,367 crore by Saudi Arabia’s Public Investment Fund. The announced investment now values Jio Platforms at an enterprise value of Rs. 5.16 lakh crore and an equity value of Rs. 4.91 lakh crore.

Saudi Arabia’s PIF investment will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis. This is the eleventh investment in Jio Platforms within the time of nine weeks since April 22, 2020.

With Saudi Arabia’s investment, Jio Platforms has raised Rs. 1,15,693.95 crore from the leading global investors that include Silver Lake, Facebook, General Atlantic, Vista Equity Partners, KKR, Mubadala, ADIA, L Catterton, and TPG.

Reliance Industries on the investment:

A release of Reliance Industries mentioned that with the addition of the PIF’s investment, Jio Platforms has been establishing partnerships with a marquee set of global financial investors, who will be contributing to the establishment of the digital society vision of India.

Chairman and Managing Director of Reliance Industries, Mukesh Ambani welcomed Saudi Arabia’s Public Investment Fund as a valued partner in Jio Platforms. He mentioned that Reliance has enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From the Oil economy, this relationship has now been moving to strengthen India’s New Oil (data-driven) economy, which is evident from the announced investment of PIF in Jio Platforms.

Mr. Ambani added that he had greatly admired the defining role that PIF has played in the economic transformation of the Kingdom of Saudi Arabia. He welcomed PIF as a valued partner in Jio Platforms and is looking forward to their sustained support as they both take ambitious steps to accelerate India’s digital transformation for empowering and enriching the lives of 1.3 billion Indians.

RIL release further mentioned that the new investment reaffirms Jio’s continuing attraction among global investors for being the best representative of deep understanding of the Indian market, India’s digital potential, capabilities to bring cutting-edge technologies and tools, and rapid digitisation opportunity post COVID.

At the investment of Rs. 1,15,693.95 crore, it is the largest continuous fund that is raised by a company anywhere in the world amid global lockdown.

The transaction has been subjected to Indian regulatory and other customary approvals. Morgan Stanley has acted as a financial advisor to the Reliance Industries and Davis Polk and Wardwell and AZB and Partners have acted as legal counsels.


Saudi Arabia’s PIF on the investment in Jip Platforms:

PIF’s governor, Yasif Al-Rumayyan while commenting on the investment stated that the potential of the Indian digital economy is very exciting. He expresses his delight at an investment in an innovative business which is the symbol of the transformation of the technology sector in India.

He mentioned that the investment will enable them to generate significant long term commercial return’s for the benefit of Saudi Arabia’s economy, in line with the mandate which is to safeguard and grow the wealth of the Kingdom.

About Saudi Arabia’s Public Investment Fund:

It is the sovereign wealth fund of Saudi Arabia. As a part of its mandate to diversify the kingdoms’ economy, it has made the largest investment into an Indian Economy till date.

It is among the largest sovereign wealth funds in the world which has total estimated assets of nearly $400 billion. The latest investment is in line with PIF’s strategy of investing in companies and sectors that will generate long0-term commercial returns to drive Saudi Arabia’s economic transformation which is part of Vision 2030 objectives.

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