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Tuesday, June 02, 2020

RIL shares zoom over 8% after Facebook deal

Reliance-Facebook deal: RIL was the top gainer on both the 30-share BSE Sensex and NSE Nifty-50 in morning trade.

By: PTI | New Delhi | Updated: April 22, 2020 1:25:31 pm
RIL shares zoom over 8% after Facebook deal The Facebook deal is part of value unlocking by RIL to cut debt. (File Photo)

Shares of Reliance Industries on Wednesday jumped over 8 per cent after Facebook announced an investment of $5.7 billion (Rs 43,574 crore) to buy a 10 per cent stake in Jio Platforms.

The scrip advanced 8.34 per cent to Rs 1,339.20 on the BSE. On the NSE, shares of the company zoomed 8.27 per cent to Rs 1,339.70.

It was the top gainer on both the 30-share BSE Sensex and NSE Nifty-50 in morning trade.

The company’s market valuation also jumped by Rs 45,527.62 crore to Rs 8,29,084.62 crore.

Facebook on Wednesday announced an investment of $5.7 billion (Rs 43,574 crore) to buy a 10 per cent stake in the firm that houses billionaire Mukesh Ambani’s telecom arm Jio as the social media giant looks to expand presence in its largest market in terms of subscriber base.

“Today we are announcing a $5.7 billion, or Rs 43,574 crore, investment in Jio Platforms Ltd, part of Reliance Industries Ltd, making Facebook its largest minority shareholder,” the company said in a statement.

Reliance in a separate statement said the investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US dollar).

“Facebook’s investment will translate into a 9.99 per cent equity stake in Jio Platforms on a fully diluted basis,” it said.

Explained | What the Facebook-Jio deal means for India

Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd (RIL), houses digital services of the group. Reliance Jio Infocomm, is a wholly-owned subsidiary of Jio Platforms.

The Facebook deal is part of value unlocking by RIL to cut debt. RIL has been seeking strategic partnerships across its businesses while targeting to deleverage its balance sheet.

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