Reliance Jio platforms raise additional ₹4,546.80 crore from Silver Lake: Key points

Reliance Industries Limited (RIL) and Jio Platforms Limited (Jio Platforms) on Friday announced raising an investment of ₹4,546.80 crore in Jio Platforms from Silver Lake and its co-investors. This is in addition to ₹5,655.75 crore investment by Silver Lake announced on May 4, 2020.

The announcement follows another major investment ( ₹9,093.60 crore) in Jio platforms from the Abu Dhabi investor Mubadala. 

Here are some of the key points of the latest Jio deal.

- The latest investment brings Silver Lake and its co-investors to ₹10,202.55 crore. Facebook still remains the largest investor with ₹43,573.62 crore investment in an exchange of 9.99% stake.

- Jio Platforms have so far raised ₹92,202.15 crore including the Mubadala and additional Silver Lake investments. Nearly 20% of stake has been given to the investors.

- Silver Lake’s investment values Jio Platforms at an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore and will translate into a 2.08% equity stake in Jio Platforms on a fully diluted basis.

- Silver Lake is known to have backed several technology companies such as Airbnb, Alibaba, Alphabet’s Verily and Waymo units, Dell Technologies, and Twitter.

- Morgan Stanley were financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. 

- Latham & Watkins LLP, Shardul Amarchand Mangaldas & Co and Simpson Thacher & Bartlett LLP were legal counsels to Silver Lake.