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RIL spurts after Facebook buys 9.99% stake in Jio Platforms

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Reliance Industries (RIL) surged 5.74% to Rs 1307 after the company said US-based Facebook will invest Rs 43,574 crore in Jio Platforms for a 9.99% stake.

RIL, Jio Platforms and Facebook Inc. on 22 April 2020 announced the signing of binding agreements for an investment of Rs 43,574 crore by Facebook into Jio Platforms. This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value. Facebook's investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis.

Jio Platforms, a wholly-owned subsidiary of RIL, is a next-generation technology company building a digital society for Indiaby bringing together Jio's leading digital apps, digital ecosystems and India's #1 high speed connectivity platform under one umbrella. Reliance Jio Infocomm, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.

RIL said that Jio aims to enable a digital India for 1.3 billion Indians and Indian businesses, especially small merchants, micro-businesses and farmers.

The partnership between Facebook and Jio will focus on India's 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector, in addition to empowering people seeking various digital services.

Concurrent with the investment, Jio Platforms, Reliance Retail and WhatsApp have also entered into a commercial partnership agreement to further accelerate Reliance Retail's new commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp.

Reliance Retail's new commerce platform, JioMart, is being built in partnership with millions of small merchants and kirana shops to empower themto better serve the needs of Indian consumers. The companies will work closely to ensure that consumers are able to access the nearest kiranas who can provide products and services to their homes by transacting seamlessly with JioMart using WhatsApp.

The transaction is subject to regulatory and other customary approvals.

Jio Platforms, a wholly-owned subsidiary of RIL, has built an all-IP data strong future proof network with latest 4G LTE technology (through its wholly owned subsidiary, Reliance Jio Infocomm). It is future ready and can be easily upgraded to support even more data, as technologies advance on to 5G, 6G and beyond.

RIL is India's largest private sector company. RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, April 22 2020. 10:22 IST
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