In a very encouraging note with ground breaking record deals, Reliance Industries Technology Arm, Reliance Jio saw an increase of 4.42% to hit an intraday high of Rs 1,574 per share in the BSE.
This is the 3rd such high profile investment in Jio, the Technology arm of Reliance Industries Ltd, in a span of less than a month, with Vista Equity Partners; A US based private equity global investor especially with technology enterprises across the world, picking up 2.32% equity in Reliance Jio, valued at Rs 11,367 crores. This investment would elevate Jio’s equity value to 4.91 lakh crores and an enterprise value of Rs 5.91 lakh crores.
In this span of few days’ another US based private equity firm Silver Lake Partners took up 1.15% stake in the Mukesh Ambani headed company in India, value amounting to Rs 4.90 lakh crores. Silver Lake will buy stake in Reliance's digital arm at 12.5 per cent premium to Facebook investment in Jio, a subsidy of Indian conglomerate Reliance Industries Ltd.
Facebook Inc announced on April 22 nd of making investments in Jio worth of Rs 43,574 crores ($ 5.7 billion) at 9.99% stake in Reliance industries Limited, Technology platform. With this Jio platforms have already raised Rs 60,596.37crores from leading technology investors from across the globe in less than a month.
With its valuation, Jio Platforms has become the fourth largest company in corporate India in terms of market capitalization after Reliance Industries, Tata Consultancy Services and HDFC Bank.
About Vista Equity Partners
Interests in tech: Vista Equity Partners are a US based company which has investment interests in companies, including enterprise software, data and technology enabled organizations in public equity, credit and permanent capital strategies.
World's largest tech fund: Vista’s total investment commitment in the world’s largest tech company’s amount to $ 52 billion. It infused a whopping $ 16 billion in technology funds in the year 2016, thereby making it the largest fundraising enterprise by an independent PE firm in the world. It has also set a record of sealing more than 200 software business acquisitions in the last 10 years in the world.
Value-add investor: Brian Sheth is the firms main deal maker and was born in the US to a Gujarati father and an Irish Catholic mother. Prior to launching Vista, where he serves as president, Wharton graduate Sheth worked at Bain Capital, Goldman Sachs and Deutsche Morgan Grenfell. He has the reputation of overseeing more software deals than anyone on the planet.
Brief History of Vista: The firm was founded in 2000 by American businessman and investor Robert F Smith and Brian Sheth. Its business portfolio constitutes more than 60 software, data and technology enabled companies across the world. Some of its top investments include Solera, Tibco and Inflobox.
What Mukesh Ambani, Chairman & MD of Reliance Industries Ltd, had to say on the Jio – Vista deal? Mr. Ambani said he was delighted to welcome Vista, one of the world’s marquee tech investors globally as a valued partner. “Like our other partners, Vista also shares with us the same vision of continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. They believe in the transformative power of technology to be the key to an even better future for everyone.”
What Mr Robert F Smith F Smith, Founder, Chairman, CEO of Vista, said on the deal? Commenting on the investment, Robert F Smith, founder, chairman and CEO of Vista, said, “We believe in the potential of the Digital Society that Jio is building for India. Mukesh’s visions as a global pioneer, alongside Jio’s world-class leadership team, have built a platform to scale and advance the data revolution it started. We are thrilled to join Jio Platforms to deliver exponential growth in connectivity across India, providing modern consumer, small business and enterprise software to fuel the future of one of the world’s fastest growing digital economies.”
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Kirkland & Ellis LLP and Shardul Amarchand Mangaldas & Co served as legal counsels to Vista.
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