Reliance Industries on Friday announced the sale of a 2.32 per cent stake in its digital unit to US private equity giant KKR for Rs 11,367 crore, the fifth deal in four weeks that will inject a combined Rs 78,562 crore in the oil-to-telecom conglomerate to help it pare debt.
“This transaction values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. 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,” the company said in a statement.
The deal follows Facebook picking up a 9.99 per cent stake in the firm, housing India’s youngest but largest telecom company, on April 22 for Rs 43,574 crore.
Within days of that deal, Silver Lake—the world’s largest tech investor—bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore.
On May 8, US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms for Rs 11,367 crore. On May 17 global equity firm General Atlantic picked up 1.34 per cent stake in Jio Platforms for Rs 6,598.38 crore.
“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,” it said.
Investments by leading global growth investors will enable Jio to scale its ecosystem and reaffirm the firm as a next-generation software product and platform company.
India has been a key strategic market for KKR with a history of investing in the country since 2006.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “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”.
KKR, he said, has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years.
“We are looking forward to leveraging KKR’s global platform, industry knowledge, and operational expertise to further grow Jio.”
Henry Kravis, Co-Founder and Co-CEO of KKR, said, “Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next-generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution”.
KKR is making the investment from its Asia private equity and growth technology funds.
The transaction is subject to regulatory and other customary approvals.