Saudi Arabia’s PIF invests Rs 11,367 crore in Jio Platforms

Saudi Arabia’s PIF invests Rs 11,367 crore in Jio Platforms

Saudi Arabia’s PIF invests Rs 11,367 crore in Jio Platforms

Collectively, private equity firms and tech giants from the United States and the Middle East made up 10 investors in Ambani's Jio and the business tycoon raised over $15 billion (INR 115,693 crores).

Reliance Industries said on Friday that it has raised more than Rs 1,68,818 crore in 58 days. With the latest investment, Jio Platform has raised a total of Rs. 1,15,693.95 crores in nine weeks.

Reliance Industries is now "in its golden decade", said billionaire Mukesh Ambani as his group became net debt-free, much ahead of its original goal of achieving the status by the end of March 2021.

"We have a very clear roadmap to becoming a zero net-debt company within the next 18 months that is by March 31, 202", he had said a year ago highlighting strong interest from strategic and financial investors in consumer businesses, Jio and Reliance Retail.

The stunning speed and size of the fund-raising has helped Reliance achieve the net debt-free status before the March deadline set for the company by Ambani, Asia's richest man.

In addition, the company also added over $6.9 billion (INR 53,124 crores) from RIL's "Rights Issue".

The company's net debt, as of March 21, 2020 was Rs 161,035 crore.

Rights Issue comes into play when the company offers existing share holders more shares at lesser prices as a non-dilutive pro rata way to raise capital.

In August 2019, Ambani's Reliance Industries Limited (RIL) emerged as the country's most valued company, with a market capitalisation of INR 8,19,073 crore, rounding up to somewhere between $90 billion-$108 billion roughly.

On Thursday, RIL announced that Saudi Arabia's sovereign wealth fund PIF will invest Rs 11,367 crore in Jio Platforms for a 2.32 percent stake, making it the eleventh public investor in the company in less than two months.

In April, Reliance said despite the covid-19 crisis and the lockdown, due-diligence by Saudi Aramco for the planned investment in its energy business is on track and both the parties are committed and actively engaged. The rally has been fuelled by the firm's ability to garner 11 foreign investments in its subsidiary Jio Platforms for a whopping Rs 1.16 trillion from leading global investors.

He said over the past few weeks, phenomenal interest was received from the global financial investor community in partnering with Jio.

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