Financial Strategies Of Jio

Jio platforms is currently the go-to investment for big money looking to get in at an early stage in the Digital initiatives of the multinational conglomerate Reliance industries.                                                  

Why Jio platforms?                                                                                                                                   

Jio platforms is based on the telecommunications business of its operator Jio, but it is much more than a telecom network, it is an entire ecosystem that aims to allow a country of 1.38 billion people to live their digital lives to the fullest, and thus has an immense growth potential.

Bird’s eye view of the financial position and strategies                                                           

Although its parent company Reliance Industries (RIL) is listed on National, Bombay and New York Stock Exchange, Jio Platforms, which aims to achieve a 100 billion $ valuation, has not yet announced the plans to go public, which analysts say will likely happen in 2021 in US.                                                 

During the pandemic which brought the whole world to a standstill, Jio was aggressively developing its expansion strategies, closing deals, raising money like there was no tomorrow! And positioning itself as a cornerstone of the Indian digital market.                                                                                                                                                 

 Reliance raised a whopping sum of about $20.2 billion (Rs 1,52,055.45 crore ) by 32.97% stake sale to 13 investors in Jio platforms in just last 2 months! These investors won’t just bring cash but will also have a strategic role in shaping the future of Jio.                                                                                                                            

 Here is a breakdown of all the strategic investments in Jio platforms so far: 

·        Facebook Inc. – US $6.1 billion for 9.99%

·        Google – US $4.7 billion for 7.73%

·        KKR – US $1.6 billion for 2.32%

·        Public Investment fund of Saudi Arabia – US $1.6 billion for 2.32%

·        Vista Equity Partners (2.32%)

·        Silver Lake Partners (2.08%)

·        Mubadala Investment Company (1.85%)

·        General Atlantic (1.34%)

·        Abu Dhabi Investment Authority (1.16%)

·        TPG Capital (0.93%)

·        L Catterton (0.39%)

·        Intel Capital (0.39%)

·        Qualcomm (0.15%)

 

Thanks to Jio, reliance became most valuable company in India and came even in the global ranks of the same. It became the first company in India to zoom past 150 billion$ market capital. Initially the idea was to concentrate all its digital initiatives in a debt free entity with growth potential.  With this massive sale of assets following the rights issue of RIL shares, the parent company itself is well on its way to become net debt free!      

by,
Kartik Matkar.