Private equity firm Vista Equity Partners, a US-based private firm has purchased a 2.32% stake in Jio Platforms. This is the third such major investment in one of India's fastest growing telecommunication companies in just a few weeks and the purchase will be worth Rs Rs 11,367 crores.
US Based Vista Equity Partners picks up equity stake in Reliance’s JIO platform pic.twitter.com/gziXlc7BR4— ANI (@ANI) May 8, 2020
Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd said, "Like our other partners, Vista also shares with us the same vision of continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. They believe in the transformative power of technology to be the key to an even better future for everyone. In Robert and Brian, whose family hails from Gujarat, I found two outstanding global technology leaders who believe in India and the transformative potential of a digital Indian society. We are excited to leverage the professional expertise and multi-level support that Vista has been offering to its investments globally for the benefit of Jio.”
On May 4, Jio announced that US technology giant Silver Lake had agreed to invest Rs 5,656 cr in Jio. "This investment values Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore and represents a 12.5 percent premium to the equity valuation of the Facebook investment announced on April 22, 2020," Reliance had said in a statement then.
Reliance Industries Limited (RIL) on April 22 announced that US tech giant Facebook had invested Rs 43,574 crore to pick up a 9.99% stake in its subsidiary Jio Platforms. The deal - equivalent to $5.7 Billion - values Jio Platforms at Rs 46.24 lakh crore or $65.95 Billion (at Rs 70 per Dollar), making the firm "amongst the top-5 listed companies in India by market capitalization" as per Reliance's statement.
RIL remarked that the investment is the "largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India" and that it will accelerate "India’s all-round development, fulfilling the needs of Indian people and the Indian economy."