While entire India was on a standstill due to the coronavirus outbreak followed by a nation-wide lockdown, Mukesh Ambani made his company Reliance Jio net debt-free 9 months before the deadline. The conglomerate has raised Rs. 53,124.0 crore by offering shares to its existing shareholders and another Rs 118,318.45 crore by selling stakes in the Jio platform through 12 deals.
Reliance Jio has become the country’s largest-ever right issue and series of stake sales deals in its arm Jio Platforms, delivering on a promise given to its shareholders in last year’s August.
"I have fulfilled my promise to the shareholders by making Reliance net debt-free much before our original schedule of 31st March 2021," Mukesh Ambani said in a statement released early on Friday.
Reliance Industries is in its ‘Golden Decade’ and Mr. Mukesh Ambani has assured his shareholders that in this decade RIL will set even more ambitious growth goals and achieve them. Back in 2017, Mr. Ambani said that the energy-to-telecom conglomerate was on the verge of a golden decade where it would yield the returns of its largest-ever capacity expansion in its petrochemical business and its investment in Jio. With these investments, the company’s net debt was Rs 161,035 crore, as on March 31, and the funds raised in the last 8 weeks exceeded it. Along with the stake sale to BP in the petro-retail joint venture, the total fundraising is in excess of Rs 1.75 lakh crore.
In twelve weeks thirteen different companies have invested in Jio platform, from leading Global investors which included Facebook, Silver Lake(Twice), Vista Equity Partner, General Atlantic, KKR. & Co.Inc., Mubadala Investment Company, Abu Dhabi Investment Authority, TPG Capital, L Catterton, Saudi Arabia PIF, and Qualcomm.
Companies Investing In Jio In A Nutshell
|Name of the Company||Stake||Total Investment|
|Vista Equity Partner||2.32%||11,367 Crores|
|Silver lake partner||1.15%||5,655.75 Crores|
|General Atlantic||1.34%||6,598.38 Crores|
|KKR. & Co.Inc.||2.32%||11,367 Crores|
|Mubadala Investment Company||1.85%||9,093.60 Crores|
|Silver lake partner||0.93%||4,546.80 Crores|
|Abu Dhabi Investment Authority||1.16%||5,683.5 Crores|
|TPG Capital||0.93%||4,546.80 Crores|
|L Catterton||0.39%||1,894.50 Crore|
|Saudi Arabia's wealth fund PIF||2.32%||11,367 crore|
Jio Platforms has diluted 25.24 percent of its equity. That’s the maximum they have in view to dilute to financial investors, which includes Mark Zukerberg’s Facebook. Any new investors coming on board in the future will have to be “strategic investors, a tech giant, for instance,” said a source who was part of the deal-making process. The RIL-FB partnership could emerge as the core platform for India's digital economy and as more consumers and small businesses shift online, it could unlock a digital market worth $ 2 trillion.
The secret behind Jio’s success is that it’s customer-centric and has a webscale mentality. Reliance Jio made it look easy when it successfully swooped into the jam-packed and super competitive mobile market with free 4G voice and data service. So in a nutshell Reliance Jio, aims at harnessing the full potential of the internet to create a digital revolution through their technologies. Innovative services and long-term planning will radically bring the world at one’s fingertips much faster and also transform the way Indians think, work, live, and are entertained.