Uploaded on May 26, 2020
PPT on All about Reliance Jio foreign funds for the stake sale.
All about Reliance Jio foreign funds for the stake sale.
All about Reliance Jio foreign funds for the stake sale Bumper deals • Reliance Jio started with $5.7 billion stake sale to Facebook, making it the largest minority shareholder in Jio, followed by another 1.15 percent dilution to Silver Lake Partners, and finally, a $1.5 billion investment from Vista Equity Partners Source: Google Images Massive investment • Over $8 billion in investments sealed, but Reliance is not done yet. Jio Platforms could divest another 6.5 percent in the range of Rs 25,000-35,000 crore, according to Greyhound Research. Source: Google Images Jio Platforms • Jio Platforms includes RIL's internet and telecom businesses, which has an estimated valuation of $65 billion. Reliance Jio has cut three equity deals with three major investors in three weeks, which is a record achievement. Source: Google Images Lot more in store for Jio • Recent reports suggest that US-based private equity fund General Atlantic is said to be mulling a $850 million to $950 million investment in Jio Platforms for a 1.5 percent to 2 percent stake. Reliance is also said to be in talks with Saudi Arabia's sovereign wealth fund for divesting a minority stake Source: Google Images Why investment? • Reliance plans to make Jio a debt-free entity this year, and is looking to dilute about 20 percent stake in the company. Jio Platforms' valuation is likely to increase further with new investments. Source: Google Images Jio’s strategy • It has divested close to 13.5 percent in Jio already. Analysts believe that the increasing interest from foreign investors will not only help Jio cut debt but also gear up for a prospective IPO. Most deals could be finalized by the end of May. Source: Google Images Adding more expertise • Some of its recent investors have rich expertise in scaling up internet businesses and taking them public. Silver Lake, for instance, had invested in Chinese internet giant Alibaba before its IPO in 2014. Source: Google Images Looking for turnaround • Greyhound Research shares that the recent investors bring in immediate capital, software-focused investments, a hands-on approach, ecosystem leverage, and turnaround expertise to Jio Platforms. Source: Google Images Ambani’s great ambition • RIL’s ambitions for Jio is a data, technology, and ecosystem opportunity. It always wanted to take Jio beyond connectivity. It will also put Jio on the path to profitability and help it earn a valuation similar to global tech giants. It has a subscriber base of 387.5 million. Source: Google Images
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