US-Based L Catterton To Buy Rs 1,895-Crore Stake In Jio Platforms

Edited by Sandeep Singh

13 Jun 2020, 10:43 PM IST

Jio Platforms houses billionaire Mukesh Ambani-led Reliance Industries' telecoms arm Reliance Jio

Reliance Industries said late on Saturday that US-based private equity firm L Catterton will purchase a 0.39 per cent stake in its digital services arm Jio Platforms for Rs 1,894.50 crore. The announcement came hours after the conglomerate said US-based TPG, a global alternative asset firm, will take a 0.93 per cent stake in Jio Platforms for Rs 4,546.80 crore. The deals took the total number of investments in Jio Platforms - which houses billionaire Mukesh Ambani-led Reliance Industries' telecoms arm Reliance Jio Infocomm - to 10 within eight weeks.

With the L Catterton deal, Jio Platforms has raised a total Rs 1,04,326.95 crore from global technology investors, including US-based Facebook, Silver Lake and General Atlantic, and Abu Dhabi-based Mubadala and Abu Dhabi Investment Authority (ADIA).

Both transactions value Jio Platforms at an equity value of Rs 4.91 lakh crore, and an enterprise value of Rs 5.16 lakh crore, Reliance Industries said in a statement.

Reliance Industries has so far sold a total 22.38 per cent stake in Jio Platforms for Rs 1,04,326.95 crore since April 22.

Among US-based investors, Facebook will purchase a 9.99 per cent stake in Jio Platforms, while Silver Lake Partners and its co-investors will take 2.08 per cent, Vista Equity Partners 2.32 per cent stake, General Atlantic 1.34 per cent and KKR 2.32 per cent.

Abu Dhabi-based Mubadala and ADIA will buy 1.85 per cent and 1.16 per cent of Jio Platforms respectively.

The deals will help Reliance Industries meet the goal set by its chairman Mukesh Ambani of eliminating its net debt by the end of the current financial year.

"I particularly look forward to gaining from L Catterton's invaluable experience in creating consumer-centric businesses because technology and consumer experience need to work together to propel India to achieving digital leadership," said Mr Ambani.

On Friday, Reliance Industries shares had closed 3.34 per cent higher at Rs 1588.80 apiece on the BSE, outperforming the benchmark S&P BSE Sensex index which rose 0.72 per cent.

Reliance Jio Infocomm - which started in 2016 - has already decimated several rivals with cut-throat pricing and is counting on Reliance Industries' retail network to expand into e-commerce. It provides telecom and digital services under brand Jio, and a connectivity platform to more than 38.8 crore subscribers.