Reliance Jio-PIF deal: 5 things you need to know

Another day, another deal. Reliance Industries continues to invite investments in its digital wing, Jio Platforms. Earlier this week, TGP and L Catteron invested ₹4,586.80 crore and ₹1,894.50 crore in Jio Platforms. And today, the company announced that Saudi Arabia-based Public Investment Fund (PIF) was investing a sum of ₹11,367 crore in Jio Platforms.

“We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms...I welcome PIF as a valued partner in Jio Platforms and look forward to their sustained support and guidance as we take ambitious steps to accelerate India’s digital transformation for enriching and empowering the lives of 1.3 billion Indians,” Mukesh Ambani, Chairman of Reliance Industries said on the occasion.

Here are five things you should know about the Reliance Jio-PIF deal:

1. PIF has invested ₹11,367 crore in Jio Platforms, which gives it a 2.32% stake in the company.

2. The deal values Jio Platforms at an equity value of ₹4.91 lakh crore and an enterprise value of ₹5.16 lakh crore.

3. This is the 11th investment that the company has invited in Jio Platforms in less than two months.

4. With this investment, Jio Platforms has raised a total of ₹115,693.95 crore from 10 global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF.

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