Facebook to invest Rs 43,574 crore in Reliance Jio

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Facebook is planning to invest Rs 43,574 crore in Reliance Jio for a 9.9per cent stake, the telecom unit of Reliance Industries Ltd (RIL), the company said in a BSE filing.

 

This investment will value Reliance Jio at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US Dollar). Facebook’s investment will translate into a  9.99 per cent equity stake in Jio Platforms on a fully diluted basis.

Reliance Jio, a wholly-owned subsidiary of Reliance Industries Limited, is a next-generation technology company building a Digital Society for India by bringing together Jio’s leading digital apps, digital ecosystems and one of India’s high-speed connectivity platform under one umbrella. 

Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms. 

The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India. 

The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalization, within just three and a half years of launch of commercial services, validating Reliance Industries' capability in incubating and building disruptive next-generation businesses, while delivering market defining shareholder value.
 

 

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