RIL hits fresh record on new Jio deal

Billionaire Mukesh Ambani led petrochemicals to telecom giant Reliance Industries (RIL) share price Friday climbed to fresh record of Rs 1,617.70 on the BSE and Rs 1,618.00 on the National Stock Exchange (NSE) during the intraday trade following the announcement of Mubadala Investment Company’s investment of Rs 9,093.6 crore into Jio Platforms.

With the latest investment, Jio Platforms has raised Rs 87,655.35 crore from leading global technology and growth investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR and Mubadala in less than six weeks.

The latest investment in Jio Platforms comes at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.

Facebook and private equity funds Silver Lake, Vista Equity Partners, General Atlantic and KKR together hold 17.12% stake in Jio. The latest would take the combined holding of overseas investors to 18.97%.

RIL has targeted raising Rs 85,000-Rs 90,000 crore from stake sales in Jio Platforms.

The stake sales will help it achieve its zero-net debt ahead of the March 2021 target. At the end of last March, Reliance had outstanding debt of Rs 3.36 lakh crore and cash of Rs 1.75 lakh crore, bringing its net debt to Rs 1.61 lakh crore.

The Mubadala investment comes just days after RIL completed the country’s biggest-ever rights issue, which was oversubscribed 1.59 times.
Following the rights issue, on Thursday, RIL reclaimed the Rs 10 lakh crore market capitalisation mark. It’s market cap stands at Rs 10,12,751.39 crore, makes it most valuable company in the country.

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