KKR Picks Up 2.32% Stake In Mukesh Ambani's Jio Platforms For Rs 11,367 Cr

Jio Platforms, the digital services subsidiary of Reliance Industries (RIL) is selling a 2.32 per cent stake for Rs 11,367 crore to The transaction, announced on Friday, values Jio Platforms at an equity value of Rs 4.91 trillion and enterprise valuation of Rs 5.16 trillion. This valuation is similar to the deals announced over the last two weeks with Vista Equity Partners and General Atlantic. The cumulative investments of the five deals announced so far is Rs 78,562 crore for a 17.1 per cent stake. For KKR, which has investments in Avendus

Capital, Bharti Infratel, Resorts and Services, this is its largest investment in Asia.



ALSO READ: Uptick in ARPU helps Bharti Airtel trump Reliance Jio in Q3 numbers

The investments are expected to help RIL reduce its debt and expand its digital offerings. RIL had a gross debt of Rs 3.36 trillion at the end of the March quarter and a net debt of Rs 1.61 trillion. The stake sale in Jio Platforms, coupled with the rights issue, fibre investment trust and the Aramco deal is expected to help the company become debt free by the end of FY21.

Deepak Jasani, Head Retail Research, HDFC Securities said that a range of diverse marquee investors lining up to buy small stakes speaks volumes about the business model and promoters’ capabilities. The deals will help RIL reach debt free status soon, he added. HDFC Securities believes that RIL might stop further stake sales once the deals hit the 24.99 per cent mark over the next few weeks.

ALSO READ: RIL says core business has got 'demand-side shock' due to coronavirus

Commenting on the deal, Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “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 believes that few have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing it in India.

RECENT NEWS

Central Banks And The Economic Horizon: Steering Through Uncertaintie

In the evolving landscape of global financial markets, the strategic role of central banks has come under intense scruti... Read more

Transforming Financial Operations With Robotic Process Automation

Author: Ricardo Goulart                           ... Read more

The Role Of Machine Learning In Fraud Detection

        Author: Gerardine Lucero                  &nbsp... Read more

Principles Of Islamic Banking And Finance

When it comes to banking, a significant new contender has entered the ring. The principles of Islamic banking and financ... Read more

The Role Of Central Banks In Global Economy

The role of central banks in global economy is a stimulating topic that requires profound understanding. Commonly, centr... Read more

History Of Banking Evolution In The 21st Century

Throughout time, the banking sector has assumed a central role in the smooth functioning of economies, generating growth... Read more