- Global alternative asset company TPG will invest Rs 4,546.80 crore in Jio Platforms at a Rs 4.91 lakh crore equity valuation and a Rs 5.16 lakh crore enterprise value
Global alternative asset company TPG will invest Rs 4,546.80 crore in Jio Platforms at a Rs 4.91 lakh crore equity valuation and a Rs 5.16 lakh crore enterprise value. The investment would turn into a completely diluted TPG equity stake of 0.93 percent in Jio Platforms. With this investment, Jio Projects has since April 22 raised Rs 102,432.45 crore from leading global investors in technology including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, and TPG.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “Today, I am pleased to welcome TPG as valued partners in our ongoing efforts to digitally transform Indians’ lives by building a digital ecosystem. TPG’s track record of investing in global technology businesses serving hundreds of millions of consumers and small businesses has impressed us, making the societies we live in better.
Jim Coulter, TPG Co-CEO, said, “We are excited to be investing in Jio through partner Reliance. As a growth, change, and innovation investor for over 25 years – and with a long-standing presence in India – we are excited to play an early role in Jio ‘s journey as they continue to transform and advance the digital economy of India. Jio is a transformative market leader who empowers small businesses and consumers across India by delivering vital, high-quality digital services to them. The company brings unrivaled market potential and execution capabilities, setting the tone for all technology companies to come
TPG invests from the funds of its TPG Capital Asia, TPG Growth, and TPG Tech Adjacencies (TTAD).
All nine transactions are subject to regulatory approvals, with the one with Facebook likely to undergo further scrutiny despite net neutrality concerns.
Reliance Jio Infocomm will continue to be a wholly-owned subsidiary of Jio Platforms, which provides connectivity platform to over 388 million subscribers.
Stake sales are part of the RIL ‘s plan to free up the debt by March. The goal is most likely to be reached by December, with the parent company mopping up Rs53,124 crore from a rights issue that closed on June 4.
Of the Rs43,574 crore it will receive from Facebook, Jio plans to use Rs28,000 crore to redeem its parent RIL’s optionally convertible preferred shares (OCPS) and keep Rs15,000 crore in its books, Jio’s top management said in a conference call on April 22.