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Reliance Jio- The recent deals

*Updated on 26th May 2020

Reliance industries is making news almost every week these days. It first managed to get Facebook in Reliance Jio where FB acquired a 9.99% stake in its telecom vertical.

In the last three weeks Reliance Jio has made 3 separate funding announcements:

  • Rs 43,574 crores from Facebook at an enterprise value of Rs 4.62 lakh crores.
  • A week later it raised Rs 5,655.75 crore from the Silver lake at an enterprise value of Rs 5.15 lakh crores (At almost a 12% premium over the FB deal).
  • Just last week it raised Rs 11,367 crore from Vista equity partners at an enterprise value of Rs 5.15 lakh crores.

The Saudi Arabian oil giant Aramco had also agreed to buy 20% stake in Reliance Industries last year for 15 billion USD. RIL says the deal is on track and due diligence by team Aramco is in progress. (ET)

Mukesh Ambani’s Zero debt target

Reliance Industries has a net debt of over 1.5 lakh crore rupees. Mukesh Ambani had announced to make Reliance a debt-free company and for that, he is raising money via. stake sale and right issues. Since 2012 the debt level of Reliance Ind. started to rise and after the launch of Jio, its debt levels increase substantially.

Right issue

Reliance has also fixed record date as 14th May 2020 for its right issue of Rs 53,125 crore.

The ratio for the record is fixed at 1:15. One share will be offered for every 15 shares held at Rs 1,257, a 25.2% discount from the current price of Rs 1575 (COB 11th May 2020).

There is a 4th deal which was announced yesterday (18th May 2020):

General Atlantic invested Rs 6,598-Crore in Jio Platforms for a 1.34% stake. Total funding Tops Rs 67,000 Crore. (source)

RelianceJio Deals till now

5th Deal with New York-based KKR & Co last week.

The private equity fund will pay Rs 11,370 crore ($1.5 billion) for a 2.3 percent stake in Jio. (source)

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