RIL shares gain after two more investments in Jio Platforms, slip later

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The share price of Reliance Industries Ltd (RIL) gained over 1 percent in the early trade on Monday after the company secured two major investments worth Rs 6,441.5 crore for its digital subsidiary Jio Platforms over the weekend.

The stock rose as much as 1.19 percent to Rs 1607.85 apiece on the BSE. However, the stock slipped later, trading 1 percent lower at Rs 1,572 per share at 12:43 pm.

RIL, on Saturday, announced that the global investment firm TPG will invest Rs 4,547 crore in Jio Platforms for a 0.93 percent stake. Similarly, private equity firm L Catterton will invest Rs 1,894.50 crore in Jio Platforms for a 0.39 percent stake, making it the tenth public investment in the Reliance Industries’ technology arm in seven weeks.

TPG, with $120 billion of assets under management, owns stakes in global names like Airbnb, Uber, and Spotify among others while L Catterton is the largest consumer-focused private equity firm in the world, managing roughly $20 billion of equity investments globally.

These investments value Jio Platforms at an equity valuation of Rs 4.91 lakh crore and an enterprise valuation of Rs 5.16 lakh crore.

With these investments, Jio Platforms has raised Rs 104,326.95 crore from leading technology investors including Facebook, Silver Lake Partners (two tranches), Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton. This is also the largest continuous fund raising by a company, globally.

Meanwhile, Reliance Industries’ partly paid rights issue shares made a strong debut on the exchanges on Monday with getting listed at a premium.

The shares got listed at Rs 690 on the NSE as against its intrinsic value Rs 397 apiece. The intrinsic value is based on Friday’s closing price of Rs 1,589, and constitutes 25 percent of a fully paid-up RIL share.

After opening, the rights issue shares soon hit the upper circuit of 10 percent at Rs 710.65. The rights issue shares were listed separately with a unique ISIN number IN9002A01024 and the scrip ID or Symbol will be RELIANCEPP on BSE and NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow