General Atlantic's stake in JIO

 

US-based private equity company General Atlantic's stake in JIO

General Atlantic

Reliance Industries has announced to sell 1.34% stake in its digital services subsidiary Jio Platform.
 Reliance said it has sold this stake to private equity company General Atlantic for Rs 6,598.38 crore.

Reliance company said on Sunday that it has done the deal to reduce debt and to boost consumer business.
This is the fourth time in the past month that the company has sold its stake. The deal is valued at Rs 4.91 lakh crore on the basis of equity and Rs 5.16 lakh crore on the basis of enterprise value.


Read it also.    JIO and Silver Lake Deal


Reliance Industries said that it wants to reduce its debt burden to zero level and a one-off deal to sell stake in Jio is part of the same strategy. So far, RIL has sold 67.894.75 by selling 14.8% stake in Jio. Have received crores of rupees

Jio digital

Reliance Group's petrochemical business has come under pressure due to falling oil prices internationally. To overcome this pressure and eliminate debt burden on itself, Reliance has sold stakes in Jio to big investors like Facebook, Silver Lake and Vista Partner.


Read it also.   JIO and Facebook Deal


Apart from selling stake in Jio, Reliance is also considering raising Rs 53,125 crore through a rights issue.

As of March 2020, the total debt on Reliance was around Rs 3.36 lakh crore and net debt was Rs 1.61 lakh crore. Reliance Industries has set a target to completely liquidate its debt by March 2021, and has signed a deal to sell a part of its petrochemical business to Saudi Arabian oil company Aramco for this purpose. But this deal has not reached its full status yet.

General Atlantic is present in India for the last two decades and has assets of over $ 34 billion. Mukesh Ambani, Chairman of Reliance Company, said in a statement about the deal
"General Atlantic has over 40 years of investment experience in the technology sector. By buying the stake in Jio, we will get an opportunity to have their specialties, we will also get the benefit of their experience. We want 1.30 billion people of the country to take advantage of digitization and General Atlantic will help us in this ”.

General Atlantic Chief Executive Officer Bill Ford said that Jio is playing an increasing role in bringing digital revolution to India.