Reliance company recently declared Rs. 11,367 crores stake sale in its digital unit Jio Platforms, a third agreement in little over two weeks that will include a combined Rs. 60,596.37 crores in the telecom group to help it cut debt.
Equity giant firm Vista Equity is buying a 2.32% stake in Reliance Jio, the company that houses Reliance’s telecoms enterprise Jio Infocomm, for Rs. 11,367 crores, Reliance Jio said in a statement.
The heavy investment provides Jio Platforms an equity worth of Rs. 4.91 lakh crores and industry value of Rs. 5.16 lakh crores, said Reliance Industries, which is managed by business tycoon Mr. Mukesh Ambani.
The agreement arrives after Reliance cut Rs. 43,574 crore deal with social giant Facebook for a 9.99% stake in Reliance Jio last month and just days later secured Rs. 5,656 crores financing from investment company Silver Lake.
The agreements, along with its strategy to sell Rs. 52,880 crores in new shares, will benefit Reliance meet its objective of eliminating Rs. 1.62 lakh crores of net debt by the end of 2020.
According to a source, the agreements between Reliance Jio and Vista were made off of special connections between the investment firm’s founder Robert Smith and Reliance head Mukesh Ambani.
The private equity firm Vista Equity has more than Rs. 4.30 lakh crores in capital engagements and has funded in organizations across areas including entertainment, healthcare, real estate and Media.