Saudi sovereign wealth fund and New York-based private equity firm General Atlantic are looking forward to in Reliance Industries Ltd (RIL). RIL is thinking to diversify its operations beyond oil and petrochemicals.
Saudi Arabia’s Public Investment Fund (PIF) is considering a majority stake by making an investment of $850 million to $950 million in Jio Platforms soon.
While General Atlantic is considering making one of its largest investments across emerging markets by putting in around ₹10,000 crores for 2% stakes in Jio Platforms soon. The deal may happen at a marginal premium of around 10 percent that will give General Atlantic 2.1-2.2 percent stake in Jio Platforms.
However, US private equity firm General Atlantic holds a minority stake in the conglomerate.
In the recent times, Jio platforms have attracted some notable investments around the globe which include the players like Facebook Inc. with a deal worth $5.7 billion for a 10 percent stake, while Vista Equity Partners and Silver Lake Partners announced for an investment of about $2.25 billion in Reliance Jio.
RIL’s stake sale talks in Jio Platforms over the past few months has driven the oil-and-gas major’s stock by around 39% to ₹1595 since 15 April, making RIL the world’s fourth-largest oil and gas firm.
This deal will help Reliance Industries limited to achieve its target to become net debt-free by March 2021. RIL had a net debt of Rs1.53 trillion and this deal will help to shed off that.
On April 30, RIL had announced its first rights issue in three decades at a share ratio of 1:15. The issue amount is Rs 53,125 crore.Saudi It has fixed May 14 as the record date for determining equity shareholders eligible to apply for the forthcoming rights issue. The company has obtained in-principle approvals from the BSE and the NSE for the proposed rights issue of 42,26,26,894 equity shares. The rights issue is also expected to help it raise funds to cut its net debt.
Meanwhile, Jio last month posted a 177.5 percent year-on-year rise in net profit to Rs 2,331 crore for the three months ended March 31, fuelled by rising subscriber base and recent tariff hike. The net profit of Jio stood at Rs 840 crore in the year-ago period. Seen sequentially, the net profit grew 72.7 percent when compared to Rs 1,350 crore in December quarter.