India’s Reliance says Abu Dhabi Investment Authority invests $752mn in digital wing

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India’s Reliance says Abu Dhabi Investment Authority invests $752mn in digital wing

Reliance Industries Ltd., the Mumbai-based Indian multinational conglomerate engaged in a swathe of activities ranging from oil to retail to telecom having a revenue of $90 billion as of December 31st, 2019, said in a statement on Sunday that the oil to telecom conglomerate had cut a deal with the ADIA (Abu Dhabi Investment Authority) under which the Abu Dhabi’s state-backed investment fund would purchase a 1.16 per cent stake in Reliance’s digital unit Jio Platform for a stark upsum of $752 million.

Apart from that, in a regulatory filing, Reliance Industries, the Mumbai-based Indian conglomerate owned by the Asia’s richest man, Mukesh Ambani, 63, having a net worth of $58 billion to date, had also added that the latest ADIA investment on its digital arm, Jio Platform that comprise of Jio Infocomm alongside its music & radio streaming apps, would proffer the unit a market valuation of $66.38 billion (5.16 trillion Indian Rupees).

Reliance raises $13 billion for 21% stakes of Jio Platform in less than 7 weeks

More importantly, following the latest ADIA deal, Reliance has secured over $13 billion for 21 per cent stakes in its digital wing, Jio Platform, in less than seven weeks, while the oil to telecom conglomerate had addressed to a handful of heavyweight investors such as Facebook Inc., Saudi Arabia’s PIF or Sovereign Wealth Fund alongside a number of US-based investment funds including KKR.

Besides, earlier on Friday, Abu Dhabi’s state-backed investment fund, Mubadala Investment Co., had announced that it would also purchase a 1.85 per cent stake in Reliance’s Jio Platform for $1.20 billion. Meanwhile, voicing an out and out optimism over the latest investment of the $700-billion ADIA fund on India’s Reliance’s Jio Platform, ADIA’s executive director of private equities department, Hamad Shahwan Aldhaheri said in a statement, “The rapid growth of the (Jio) business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution.