Reliance Industries Limited (RIL) on Friday announced that KKR will invest Rs 11,367 crore in Jio Platforms.
This transaction values Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion.
This is KKR’s largest investment in Asia and will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis.
Over the last month, leading technology investors, such as, Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms.
Jio Platforms is a wholly owned subsidiary of Reliance Industries Limited.
ALSO READ: General Atlantic picks up 1.34% stake in Jio Platforms for Rs 6,598 crore
"I am delighted to welcome KKR, one of the world's most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians," said RIL Chairman Mukesh Ambani.
KKR is making the investment from its Asia private equity and growth technology funds.
ALSO READ: Silver Lake checks into Jio Platforms, snaps up 1.15% for over Rs 5,600 cr
"Founded in 1976, KKR has a long history of building leading global enterprises and successfully investing in businesses in the technology sector, including BMC Software, ByteDance and GoJek through its private equity and technology growth funds. Since inception, the firm has invested over $30 billion (total enterprise value) in tech companies, and today the firm’s technology portfolio has more than 20 companies across the Technology, Media and Telecom sectors.
In addition, India has been a key strategic market for KKR with a history of investing in the country since 2006," said the release.
The transaction is subject to regulatory and other customary approvals.
NUMBERS AT A GLANCE
Rs 78,562 crore: The combined value of the five deals signed by Reliance Jio Platforms since April 22.
16.95%: The five deals announced by the telecom business of the Mukesh Ambani-promoted Reliance Industries group involves sale of nearly 17% stake to foreign investors
Rs 11,5367 crore: Value of the fifth deal, to sell 2.32% stake to KKR
Rs 43,574 crore: The biggest of its five deals, with Mark Zuckerberg-led Facebook, involves the sale of 9.99% stake for Rs 43,574 crore
3 others: The other three deals are with Silver Lake Partners (Rs 5,656 crore for a 1% stake), Vista Equity Partners (Rs 11,367 crore for a 2.3% stake), and General Atlantic (Rs 6,598 crore for a 1.34% stake)
17.6%: Since the announcement of the first deal on April 22, the stock of Reliance Industries Ltd (RIL) has risen by Rs 215.12, or 17.6%, on a net basis. It rose from Rs 1,224.93 on April 21 to a closing peak of Rs 1,562.56 on May 11, before shedding some value to close at Rs 1,440.05 on May 21
16.5%: RIL’s market capitalisation has risen by Rs 1.29 trillion, or over 16.5%, during this period
This transaction values Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion.
This is KKR’s largest investment in Asia and will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis.
Over the last month, leading technology investors, such as, Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms.
Jio Platforms is a wholly owned subsidiary of Reliance Industries Limited.
ALSO READ: General Atlantic picks up 1.34% stake in Jio Platforms for Rs 6,598 crore
"I am delighted to welcome KKR, one of the world's most respected financial investors, as a valued partner in our onward march to growing and transforming the Indian digital ecosystem for the benefit of all Indians," said RIL Chairman Mukesh Ambani.
KKR is making the investment from its Asia private equity and growth technology funds.
ALSO READ: Silver Lake checks into Jio Platforms, snaps up 1.15% for over Rs 5,600 cr
"Founded in 1976, KKR has a long history of building leading global enterprises and successfully investing in businesses in the technology sector, including BMC Software, ByteDance and GoJek through its private equity and technology growth funds. Since inception, the firm has invested over $30 billion (total enterprise value) in tech companies, and today the firm’s technology portfolio has more than 20 companies across the Technology, Media and Telecom sectors.
In addition, India has been a key strategic market for KKR with a history of investing in the country since 2006," said the release.
The transaction is subject to regulatory and other customary approvals.
NUMBERS AT A GLANCE
Rs 78,562 crore: The combined value of the five deals signed by Reliance Jio Platforms since April 22.
16.95%: The five deals announced by the telecom business of the Mukesh Ambani-promoted Reliance Industries group involves sale of nearly 17% stake to foreign investors
Rs 11,5367 crore: Value of the fifth deal, to sell 2.32% stake to KKR
Rs 43,574 crore: The biggest of its five deals, with Mark Zuckerberg-led Facebook, involves the sale of 9.99% stake for Rs 43,574 crore
3 others: The other three deals are with Silver Lake Partners (Rs 5,656 crore for a 1% stake), Vista Equity Partners (Rs 11,367 crore for a 2.3% stake), and General Atlantic (Rs 6,598 crore for a 1.34% stake)
17.6%: Since the announcement of the first deal on April 22, the stock of Reliance Industries Ltd (RIL) has risen by Rs 215.12, or 17.6%, on a net basis. It rose from Rs 1,224.93 on April 21 to a closing peak of Rs 1,562.56 on May 11, before shedding some value to close at Rs 1,440.05 on May 21
16.5%: RIL’s market capitalisation has risen by Rs 1.29 trillion, or over 16.5%, during this period
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