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US firm Vista Equity Partners to invest Rs 11,367 cr in Reliance's Jio Platforms for 2.32 percent stake

Vista Equity Partners, a US-based firm will soon invest Rs 11,367 crore into Reliance Jio Platforms for a 2.32 percent stake. 

May 8, 2020 11:57 IST
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Vista Equity Partners, a US-based firm will soon invest Rs 11,367 crore into Reliance Jio Platforms for a 2.32 percent stake. This would be the third major investment in Reliance Industries Limited in less than three weeks.

RIL Chairman Mukesh Ambani said in a statement that like RIL’s other partners, Vista shares the same vision of continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. He stated that the firm believes in the transformative power of technology to be the key to an even better future for everyone.

Ambani continued by saying that RIL is looking forward to leveraging the professional expertise and multi-level support that Vista has been offering to its investments globally for the benefit of Jio.

Key Highlights

•  Vista's investment is at a 12.5 percent premium over the Facebook deal announced in April.

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

•  Vista's investment will translate into a 2.32 percent equity stake in Jio Platforms on a fully diluted basis.

•  This will make Vista the largest investor in Jio Platforms, only behind Reliance Industries and Facebook. 

About Vista Equity Partners

Vista Equity Partners (Vista) is a leading global investment firm, which aims to empower and grow enterprise software, data and technology-enabled companies that are reinventing industries and catalysing change.

The firm was established in 2000 by American businessman and investor Robert F. Smith and Brian Sheth. The firm had pledged one million dollars to assist the Akshaya Patra Foundation to deliver meals to Indian school children in September 2017. 

The Vista portfolio companies have a significant presence in India with over 13,000 employees. However, this is the firm’s first sizable investment in India.

Background

Reliance Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks.

Facebook had revealed its plan of investing USD 5.7 billion or Rs 43,574 crore in Jio Platforms for a 9.99 percent stake on April 22, 2020. On May 4, an American private equity firm Silver Lake said that it will invest Rs 5,655.75 crore in Jio Platforms for a 1.15 percent stake.

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