InvestorQ : What does the latest stake sale in Jio Platforms to a US fund mean for the Reliance stocks going ahead?
indhumathi Sayani made post

What does the latest stake sale in Jio Platforms to a US fund mean for the Reliance stocks going ahead?

Answer
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shrinidhi Rajan answered.
4 months ago


A little over a week after Facebook took a 9.99% stake, we have US based private equity giant (Silver Lake Partners) buying a small 1% stake in Jio Platforms for $750 million. The deal actually valued the digital property of Reliance Industries at $65 billion; a 12% valuation premium over Facebook deal. Silver Lake has a record of partnering the leading technology companies globally in the emerging technology space as an investor, mentor and partner. Silver Lake is also one of the most respected voices in technology and finance. With this deal, Jio Platforms now accounts for more than 50% of the overall valuation of the Reliance Group. Reliance Platforms will use this alliance to bring cutting-edge technologies and tools such as AI, Blockchain, AR/VR, Big data into play for all Indians. In the past, Silver Lake has invested in some of the marquee technology enabling names like Twitter, Airbnb, Alibaba, Dell Technologies etc. This also marks Silver Lake’s first major investment in India. In terms of assigning a sharper valuation premium, this deal should be value accretive for RIL.