Public Investment Fund of Saudi Arabia to invest Rs. 11,367 crore in Reliance Jio
Reliance Jio will get Rs. 11,367 crore investment from Saudi Arabia’s Public Investment Fund (PIF), Reliance Industries Limited (RIL) announced on Thursday. PIF is the 10th investor to put money in Jio Platforms over the last two months. The PIF investment announcement comes less than a week after RIL revealed investments from TPG and L Catterton. PIF investment values Jio Platforms at Rs. 4.91 lakh crore in equity, same as the previous eight investments.
Jio – PIF deal
According to a press release shared by RIL, PIF will get 2.32 percent stake in Jio Platforms for the Rs. 11,367 crore investment. With this RIL has divested 24.7 percent stake in Jio Platform for Rs. 1,15,693.95 crore.
In addition to PIF, TPG, and L Catterton, Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, and ADIA have announced investments in Reliance Jio. Facebook was the first to reveal its investment of Rs. 43,573.62 crore for 9.99 percent stake.
Recent investments in Jio Platforms
|Investor in Jio||Investment||Stake in Jio|
|Rs. 43,574 crore||9.9 percent|
|Silver Lake Partners||Rs. 10,202.8 crore (2 rounds)||2.08 percent|
|Vista Equity Partners||Rs. 11,367 crore||2.32 percent|
|General Atlantic||Rs. 6,598 crore||1.32 percent|
|KKR||Rs. 11,367 crore||2.32 percent|
|Mubadala||Rs. 9,093.60 crore||1.85 percent|
|ADAI||Rs. 5,683.50 crore||1.16 percent|
|TPG||Rs. 4,546.80 crore||0.93 percent|
|L Catterton||Rs. 1,894.50 crore||0.39 percent|
|Saudi PIF||Rs. 11,367 crore||2.32 percent|
Jio Platforms is an RIL subsidiary that controls Reliance Jio, Jio Fiber, Jio apps, and other Jio services. It is essentially a telecom and digital arm of the Indian conglomerate. Jio has a subscriber base of over 385 million telecom users in the country and it is the leading operator right now. With the likes of Airtel and Vodafone Idea dealing with massive AGR dues, Jio is placed very well to dominate the Indian telecom market.
The Public Investment Fund is the investment arm of Saudi Arabia and one of the largest sovereign wealth funds in the world. PIF was founded in 1971 and has total estimated assets for $320 billion.
Meanwhile, Bloomberg on Wednesday reported that the Competition Commission of India (CCI) is looking into Facebook’s Jio investment. CCI hasn’t revealed its concerns at this point; however, if it does pursue an official investigation, we will hear more.