Jio Platforms Gets Rs 11,367 Crore Investment From Saudi Arabia¡¯s PIF For 2.32% Stake

Reliance is surely on a roll. After announcing major investments from Facebook, Vista Equity Partners and others, it has managed to bag another investor for its Jio platforms.

This time, it is the Public Investment Fund or PIF from Saudi Arabia.

Reuters

PIF has announced that it will invest Rs 11,367 crores for a 2.32 percent stake in Reliance Jio Platforms at an equity value of Rs 4.91 lakh crores as well as an enterprise value of Rs 5.16 lakh crores. This investment brings the total amount of investments in Jio Platforms to Rs 115,693.95 crore.

In case you didn¡¯t know, PIF is the sovereign wealth fund of Saudi Arabia and this investment is a part of its mandate to diversify its economy. It is also the largest investment made by Saudi Arabia into the Indian economy to-date.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, ¡°We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India¡¯s New Oil (Data-driven) Economy, as is evident from PIF¡¯s investment into Jio Platforms.¡±

He added, ¡°I have greatly admired the defining role PIF has played in driving the economic transformation of the Kingdom of Saudi Arabia. I welcome PIF as a valued partner in Jio Platforms and look forward to their sustained support and guidance as we take ambitious steps to accelerate India¡¯s digital transformation for enriching and empowering the lives of 1.3 billion Indians.¡±

Reuters

Yasir Al-Rumayyan, Governor of PIF, commented: ¡°We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth.¡±

He added, ¡°This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia¡¯s economy and our country¡¯s citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom.¡±

This is the third investment from the Middle-East after UAE's Mubadala and ADIA (Abu Dhabi Investment Authority) investing Rs 9,093 crores and Rs 5,683 crores respectively.