Financial Strategies Of Jio
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!
Amazing blog!! Loved it
ReplyDeleteThank you so much
DeleteIsn't reliance already debt free?
ReplyDeletereliance has reported that it is debt free, but there exists a wide gap between RIL’s reported net debt and estimates of its net debt by credit rating agencies and brokerage analysts which added deferred spectrum liabilities and capex creditors to arrive at their estimate of net debt. Even so, the extent of fundraising is substantial, and RIL’s debt overhang has lifted meaningfully.
DeleteI felt that the research is very educational and it provides an insightful information about the company
ReplyDeleteGood Information . Considering the way industry is going to function post Covid there wOuld be much more growth seen in Jio..
ReplyDeleteThank you
DeleteDuring this Pandemic where WORK FROM HOME was the new Normal one thing which Industry specially Engineering consultancies where struggling was related to bandwidth for people WFH. There was no better time for JIO to consolidate .!
ReplyDeleteI agree!
DeleteAmazing blog with detail insight
ReplyDeleteThanks a lot
DeleteYes indeed. It falls in line with company’s aggressive acquisitions of start-ups that we have seen since past 3 years to expand its business line and boost product offerings of its subsidiaries- reliance Jio and reliance retail.
ReplyDelete