India’s oil-to-telecom giant Reliance Industries (RIL) today announced that Vista Equity Partners – a US-based private equity and venture capital firm – will invest Rs 11,367 crore to pick a 2.32 per cent equity stake in Jio Platforms, a wholly-owned subsidiary of RIL that works on digital apps, digital ecosystems and the mobile service.
The latest deal puts the Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, as per the data given by RIL in an exchange filing to the BSE. With this latest deal, Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks, according to the company.
With this latest development, Vista Equity Partners becomes the third investor in Jio Platforms after Facebook and Silver Lake.
Vista’s investment will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis, making Vista the third largest investor in Jio Platforms behind RIL and Facebook.
Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms, RIL said.
He’s a look at all the stake sale deals in Jio Platforms done by RIL in the past fortnight.
On April 22, social media behemoth Facebook Inc. picked up a 9.99 per cent stake in Jio Platforms at a whopping Rs 43,574 crore ($5.7 billion) making it the largest foreign direct investment (FDI) for a minority investment in India.
This investment by Facebook put the value of Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value (or $65.95 billion at a conversion rate of Rs 70 to a US dollar), according to a statement by RIL to the BSE.
It further said that concurrent with the investment Reliance Retail (owned by RIL) and WhatsApp (owned by Facebook) have also entered into a commercial partnership agreement to further accelerate Reliance Retail’s new e-commerce business JioMart using WhatsApp’s platform.
Earlier this week, Silver Lake – a US-based private equity firm which invests in technology, technology-enabled and related industries – acquired a 1.15 per cent stake after it announced an investment of Rs 5,655.75 crore in Jio Platforms.
The investment by Silver Lake was at a 12.5 per cent premium to the Facebook deal and put the value of Jio Platforms at an equity value of Rs 4.90 lakh crore and an enterprise value of Rs 5.15 lakh crore, RIL said in an exchange filing to the BSE.
It said that the transaction is subject to regulatory and other customary approvals.
Vista Equity Partners
The latest investor in Jio Platforms is Vista Equity Partners, an American private equity and venture capital firm. RIL announced that Vista has picked a 2.32 per cent stake for an investment of Rs 11,367 crore.
According to RIL’s exchange filing to BSE, Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks.
The Vista transaction is subject to regulatory and other customary approvals, RIL statement said.
Morgan Stanley acted as financial advisor to RIL and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Kirkland & Ellis LLP and Shardul Amarchand Mangaldas & Co served as legal counsels to Vista.
Vista is a global investment firm which focuses on empowering and growing enterprise software, data and technology-enabled companies that are reinventing industries and catalyzing change. Currently, Vista portfolio companies have a significant presence in India with over 13,000 employees.
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