Reliance Industries Limited's digital platform Jio Platforms Limited has raked in 10 investments in the past seven weeks, with the latest ones from TPG and PE firm L Catterlon. The two companies have bought 0.93 per cent and 0.39 per cent stake in JPL for Rs 4,546.80 crore and Rs 1,894.50 crore, respectively. With this, the company has sold a total of 22.38 per cent stake in Jio Platforms for Rs 1.04 lakh crore. The recent investments in JPL are especially significant at a time when the world is grappling with COVID-19 and businesses are taking a severe hit as they reflects confidence in Indian businesses.
Here's a timeline of Jio Platform's fundraising journey so far.
- April 22: Facebook investment: The social media giant announced an investment of Rs 43,574 crore in Reliance Jio accounting for a 9.99% stake in the company's platforms.
- May 3: Silver Lake- The American private equity (PE) giant will pick a 1.15% stake in Reliance Jio with an investment of Rs 5,656 crore in its platforms.
- May 8: Vista Equity- The US-based private equity firm will pick a 2.32 per cent stake in RIL's Jio platforms for Rs 11,367 crore.
- May 17: General Atlantic- The New York-headquartered PE firm announced an investment of Rs 6,598 crore in Reliance Jio for a 1.34% stake.
- May 22: KKR- The US-based PE company will buy a 2.32% stake in Jio platforms for Rs 11,367 crore.
- June 5: Mubadala- The Abu Dhabi-based sovereign investor announced an equity infusion of Rs 9,093 in Reliance Jio on Friday in exchange for a 1.85% stake in the telecom arm of RIL.
- June 13: RIL on Saturday announced TPG will invest Rs 4,546.80 crore in 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 ninth investment for the company in the last seven weeks.
- June 13: L Catterton, one of the world's largest consumer-focused private equity firms, will also invest Rs 1,894.50 crore in JPL. L Catterton's investment will translate into a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis.
JPL was created as a subsidiary of RIL in October last year to bring together all digital and mobility businesses under one roof.
The new entity has become the parent of Reliance Jio Infocomm and applications like MyJio, JioTV, JioCinema, JioNews and JioSaavn, besides content-generation ventures. Thus, the operating company Reliance Jio became a step-down subsidiary of RIL.
For making JPL debt-free, the parent company has infused Rs 1.08 lakh crore in it. They want to build JPL like Alibaba and Google, which claim high valuations in the stock markets. RIL has been using the cash flow from its flagship petroleum refining business to build the telecom and retail subsidiaries all these years. The Indian conglomerate has spent about Rs 4 lakh crore to build Reliance Jio.