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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