Silver Lake, a U.S. based private company, has bought a 1.15% stake in Reliance Jio after Facebook did the same 12 days back. However, this new investment has raised Reliance Jio’s value by 23%. It looks like Reliance Jio is selling hotcakes all of a sudden as the biggest companies in the world want a share of this 3-year-old telecom enterprise. By the end of March, Jio had more than 370 million subscribers in India.
What Is The Value Of This Silver Lake-Reliance Jio Deal?
Some of the key points of this new partnership are as follows,
- Jio platforms will now have an equity value of Rs. 4.90 lakh crore and Rs. 5.15 lakh crore will be the enterprise value.
- This deal was sought after through Morgan Stanley’s financial advisory to Reliance Jio.
- Silver Lake is a known face in the mark, having made investments in Airbnb, Twitter, Dell Technologies and Alphabet’s Verily.
- This investment provides a 12.5% premium to the equity of valuation in comparison to Facebook’s deal.
- Reliance Jio will further try and enhance the technology they had been working on including Big Data Analytics, Artificial Intelligence, IoT, Augmented Reality etc.
Here’s a look at Jio’s share price trajectory over the last few months.
Will Mukesh Ambani owned Reliance Jio deal in more partnerships this month? We are yet to see.
Source: Business Insider and Hindustan Times
