InvestorQ : Has the latest investment deal between Mubadala of Abu Dhabi and Reliance Jio also happened at the same valuations like previous ones?
Tisha Malhotra made post

Has the latest investment deal between Mubadala of Abu Dhabi and Reliance Jio also happened at the same valuations like previous ones?

Answer
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Moii Chavate answered.
4 months ago


Mubadala which is the sovereign fund of Abu Dhabi will invest Rs.9094 crore for a 1.85% stake in Jio Platforms. This is the sixth major investment and the first sovereign fund to invest in Jio Platforms.

Earlier investors in Jio Platforms in the last one month included marquee names like Facebook, Silver Lakes, Vista Equity Partners, General Atlantic Partners and KKR.

This assigns a valuation of around Rs.492,000 crore to Jio Platforms which translates into $65 billion in dollar terms. That is approximately the valuation at which other PE deals were struck in the last six weeks. The Facebook deal was at a lower valuation but that was more because it was a strategic investment.

With the Mubadala deal, Reliance has managed to monetize a little over 19% of Jio Platforms and has raised Rs.88,000 crore in the process which will substantially contribute to RIL becoming zero net-debt by Mar-21.

The valuation of Jio Platforms makes it the third most valuable company in India ahead of Hindustan Unilever, HDFC, Bharti and Infosys.