- Reliance Industries has raised the equivalent of about $847 million from the sale of two stakes in its digital unit Jio Platforms. These are the details.
Reliance Industries has raised the equivalent of about $847 million from the sale of two stakes in its digital unit Jio Platforms said the company over the weekend.
TPG is going to buy a 0.93% stake for $598 million and L Catterton will gain a 0.39% stake for $249 million.
With these investments, Reliance has sold over 22% of Jio Platforms and closed $13.72 billion in the last weeks.
“Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services,” said TPG co-CEO Jim Coulter in a statement.
TPG — which has over $79 billion of assets under management — is known for being an early investor in tech companies like Spotify, Uber, and Airbnb. And L Catterton is generally known for making investments in consumer-focused brands like Nature’s Variety, FabIndia, and Peloton.
Jio Platforms include Reliance’s telecommunications arm Jio Infocomm and the music and video streaming apps. And with this investment, it gives the company an enterprise value of $67.87 billion.
Jio Infocomm is known for being the largest Indian telecommunications company based on subscribers with over 376 million users. The company was able to grow quickly since it launched in 2016 by offering free voice services and low-priced data plans.
With these deals and a $7 billion share sale, Reliance is planning to meet its target of paying off $21.4 billion of net debt by the end of the year.
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