KKR invests Rs 11367 crore to buy 2.32% stake in Reliance Jio

On Friday, the US-based private equity firm, KKR made public its plans to invest Rs 11367 crore in Reliance Jio for a stake of 2.32%. It would be the fifth massive investment into India’s largest internet and telecom provider. Prior to KKR, social media giant Facebook, private equity funds company Silver Lake, Vista Equity Partners, and General Atlantic invested in the Jio platforms in the recent past. Together their collective investment brings in Rs 78,562 crore into Jio Platforms. Market analysts believe there could be more such deals in the company’s way in the near future.

With regard to the current investment, Reliance Industries said in its statement, “This transaction values Jio Platforms at an equity value of Rs4.91 lakh crore and an enterprise value of Rs5.16 lakh crore. This is KKR’s largest investment in Asia and will translate into a 2.32% equity stake in Jio Platforms on a fully diluted basis.”

The company added, “Diverse marquee investors are becoming long-term shareholders of JPL because of a unique set of technologies and platforms under one entity. There are no similar opportunities available anywhere else globally. And an endorsement of the quality of the management,”

“KKR shares our ambitious goal of building a premier Digital Society in India. KKR has a proven track record of being a valuable partner to industry-leading franchises and has been committed to India for many years,” RIL chairman Mukesh Ambani said in the statement. “We are looking forward to leveraging KKR’s global platform, industry knowledge, and operational expertise to further grow Jio.”

“Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next-generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution,” Henry Kravis, co-founder and co-chief executive of KKR, said in a statement.“We are investing behind Jio Platforms’ impressive momentum, world-class innovation, and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and the Asia Pacific,” he added.

Since its establishment in 1976, the US private equity company has invested in more than 20 companies across the technology, media, and telecom industry.

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