RIL trades 3% higher on Vista Equity deal; rallies 30% in one month

While the deal is smaller than the one with Facebook for 9.99 per cent stake, it comes at a 12.5 per cent premium
Shares of Reliance Industries (RIL) opened 3 per cent higher at Rs 1,550 on the BSE on Friday, extending its Thursday’s 3 per cent gain after the company announced that US-based private equity firm Vista Equity will invest Rs 11,367 crore into Jio Platforms, a wholly-owned subsidiary of the company.

Vista’s investment will translate into a 2.32 per cent equity stake in Jio Platforms on a fully diluted basis, making Vista the largest investor in Jio Platforms, only behind Reliance Industries and Facebook. Jio Platforms has now raised Rs 60,596.37 crore from leading technology investors in less than three weeks.

This is a third major equity deal for Jio Platforms in three weeks — it previously sold a 9.9 per cent stake to Facebook for Rs 43,534 crore, and then 1.5 per cent to Silver Lake for Rs 5,655 crore.

Vista is a global investment firm focused on empowering and growing enterprise software, data and technology-enabled companies. It has more than $57 billion in cumulative capital commitments and its global network of companies collectively represents the fifth-largest enterprise software company in the world.

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In the past one month, RIL has rallied 30 per cent, as compared to a 6.7 per cent rise in the S&P BSE Sensex. With past two days’ rally, RIL has recovered 77 per cent from its 52-week low of Rs 876 touched on March 23, in an intra-day deal. It is 4 per cent away from its all-time high level of Rs 1,618 touched on December 20, 2019.

At 09:20 am, however, the stock had pared some of the initial gains, but was still trading 2 per cent higher at Rs 1,541 on the BSE, against 1.6 per cent rise in the S&P BSE Sensex. A combined 2.8 million equity shares changed hands on the counter on the NSE and BSE so far.


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