Saudi Arabia's PIF picks up 2.3% stake in Reliance Jio for Rs 11,367 cr

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Reliance Jio announced a 2.3 per cent equity stake sale to Saudi Arabia's sovereign wealth fund Public Investment Fund for Rs 11,367 crore. The company said that this investment will further help Jio in building a technology growth platform for consumers. With this investment by PIF, Reliance Jio has raised Rs 1.15 trillion (Rs 115,693.95 crore) through partnerships with global investors in nine weeks. 

Previous investors include Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPGand LCatterton. The investments began in April 2020. This investment values Jio Platforms at an equity value of Rs 4.91 trillion and an enterprise value of Rs 5.16 trillion. 

"This investment is in line with PIF’s strategy and mandate of investing in sectors and companies that generate long-term commercial returns to drive  Saudi  Arabia’s economic transformation as part of vision 2030 objectives. This investment supports  PIF’s mandate of building strong global investment partnerships to further Saudi Arabia’s investment reach and exposure", Jio said in a release.

Mukesh  Ambani,  Chairman and  Managing  Director of Reliance  Industries, said, “We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India’s New Oil (Data-driven) Economy, as is evident from PIF’s investment into Jio Platforms. I have greatly admired the defining role  PIF  has played in driving the economic transformation of the Kingdom of  Saudi  Arabia. I welcome PIF as a valued partner in Jio Platforms and look forward to their sustained support and guidance as we take ambitious steps to accelerate India’s digital transformation for enriching and empowering the lives of 1.3 billion Indians.”

Yasir Al-Rumayyan, Governor of PIF, commented: “We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the  Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth. This investment will also enable  us  to  generate  significant  long-term  commercial  returns for the benefit of Saudi Arabia’s economy and our country’s citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom.”

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