Jio fundraising tops Rs 1 trillion as TPG, L Catterton invest Rs 6,441 cr

Reliance Industries (RIL) on Saturday announced that it had sold a 0.93 per cent stake in Jio Platforms to global investment firm TPG for Rs 4,547 crore and 0.39 per cent to private equity firm L Catterton for Rs 1,894 crore, taking the total investment in the digital services platform to Rs 1.04 trillion.
 

With these investments, RIL has sold over 22 per cent in Jio Platforms. The valuation of the deals is in line with recent transactions pegging Jio’s equity value at Rs 4.91 trillion and enterprise value at Rs 5.16 trillion. Jio has so far concluded deals with global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, and L Catterton in less than two months.
 

Mukesh Ambani, chairman and managing director of RIL, said he was happy to welcome TPG and L Catterton as valued investors “in our continued efforts towards digitally empowering the lives of Indians through the creation of a digital ecosystem”.

TPG Co-CEO Jim Coulter said Jio was a disruptive industry leader and was bringing unmatched potential and execution capabilities to the market, setting the tone for all technology firms to come.

 

Michael Chu, global Co-CEO of L Catterton, said, “We are strong supporters of fostering growth through product development, enhanced digital capabilities and strategic alliances. We look forward to partnering with Jio.”
 

The deals are expected to help RIL retire a substantial chunk of its net debt of Rs 1.6 trillion at the end of March. In addition to the investments in Jio Platforms, the company is expected to repay its debt through a combination of cash profit from operations, rights issue proceeds, and divestment of 49 per cent share in fuel retailing business to BP. RIL has advanced its debt reduction target and plans to make the company debt-free by December this year.