Jio Platforms stake sale: Intel becomes 11th investor with Rs 1,894.50 crore investment

Jio Platforms, the technology subsidiary of Reliance Industries, has announced its twelfth investment. Intel is investing Rs 1,894.50 crore for a stake of 0.39 percent. With this investment, the digital venture has now raised a total of Rs 1,17,588.45 crore from Facebook and other leading technology investors. Intel’s investment is identical to one made by L Catterton and is among the smallest for the company. Reliance has now sold 25.09 percent stake in Jio Platforms to leading investors.

Jio Platforms sells 0.39 percent stake to Intel

Jio Platforms’ impressive stake sale run started with Facebook‘s acquisition of 9.99 percent stake for Rs 43,574 crore on April 22. Silver Lake, Vista, General Atlantic and KKR announced investments in May. Last month, Mubadala, ADIA TPG, L Catterton and PIF joined these investors while Silver Lake announced additional investment. Now, the company has found its 11th investor in the form of Intel and 12th investment, taking the total raised to Rs 1,17,588.45 crore.

The deal announced today values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is the largest continuous fund raising by any company in the world. Intel Capital, the corporate venture capital of semiconductor giant Intel, has written the cheque to RIL subsidiary. Earlier, Mukesh Ambani, Chairman and Managing Director of Reliance Industries, had said that RIL does not plan to sell more stake in the digital venture.

However, we might see smaller stake sales like the one announced today going forward. There are rumors of Microsoft and Twitter interested in buying stake as well. The last big investment in Jio Platforms was by Saudi Arabia’s sovereign wealth fund, which invested Rs 11,367 crore for a 2.32 percent stake. The subsidiary of RIL is exploring the option to list itself on international stock exchange in the next five years. It is selling the dream of digitizing India’s unorganized sector and investors are buying it.


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