HomeBusiness NewsA look at the 11 investments in just 58 days that helped make RIL debt free

A look at the 11 investments in just 58 days that helped make RIL debt free

Mukesh Ambani-led Reliance Industries has raised Rs 1.15 lakh crore from 11 investors in less than 2 months and Rs 53,124.20 crore from rights issue.

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By Pranati Deva  June 19, 2020, 5:02:37 PM IST (Updated)

A look at the 11 investments in just 58 days that helped make RIL debt free
Reliance Industries (RIL) Chairman Mukesh Ambani on Friday said that the company had become net debt-free
after raising Rs 1.68 lakh crore in just 58 days. Along with the stake sale to BP in the petro-retail JV, the total fundraise stands at more than Rs 1.75 lakh crore.

“I have fulfilled my promise to the shareholders by making Reliance net debt-free much before our original schedule of 31st March, 2021," Mukesh Ambani said.

In his address to the shareholders at the company's 42nd AGM in August last year, Ambani had spoken about the roadmap for Reliance becoming a net-debt free company before 31st March, 2021.

"Our net-debt was Rs 161,035 crore, as on 31st March 2020. With these investments, RIL has become net debt-free," Ambani said in the company statement to the stock exchanges.

The company has raised Rs 1.15 lakh crore from leading investors who invested in the firm's technology arm Jio Platforms in less than two months and Rs 53,124.20 crore from RIL's rights issue.

Here's a look at the 11 investments that made RIL debt-free:

1) On April 22, Facebook bought 9.99 percent stake in Jio Platforms for a Rs 43,574 crore investment, boosting its efforts to cut debt. This was the first investment in the company which later led to a trend. The investment made Facebook the largest minority shareholder in Jio Platforms and valued the RIL technology arm at Rs 4.62 lakh crore ($66 billion) pre-money enterprise value.

2) On May 3, private equity firm Silver Lake invested Rs 5,655.75 crore in the first tranche for a 1.15 percent stake in Jio Platforms. Later in June, the company announced additional investment in the company. Silver Lake Partners is a US-based PE Fund with operations across US and China with $43 billion in combined assets under management globally. The majority of its investments are across tech and consumer-facing verticals. Silver Lake has investments in Airbnb, Alibaba, Twitter, Alibaba, Ant Financial and Motorola. Its investments in India include Eka Software.

3) On May 8, Vista Equity Partners, a US-based private equity firm, bought a 2.32 percent stake worth Rs 11,367 crore in Jio Platforms. Vista is a leading global investment firm focused on enterprise software, data, and technology-enabled companies. Vista has more than $57 billion in cumulative capital commitments and its global network of companies collectively represents the fifth largest enterprise software company in the world.

4) On May 17, New York-headquartered private equity fund General Atlantic said it will invest Rs 6,598.38 crore for a 1.34 percent stake in Jio Platforms. This was General Atlantic's largest investment in Asia.

5) On May 22, US-based PE firm KKR bought 2.32 percent in Jio Platforms for Rs 11,367 crore. The deal with Jio Platforms is KKR’s largest investment in Asia. KKR manages several alternative asset classes including private equity, energy, infrastructure, real estate and credit, having strategic partners that manage hedge funds.

6) On June 5, Abu Dhabi-based Mubadala announced an investment worth Rs 9,093.60 crore for a 1.85 percent stake in Jio Platforms. Mubadala manages a $229 billion portfolio in five continents with interests in multiple sectors including aerospace, ICT, semiconductors, metals and mining, renewable energy, oil and gas, petrochemicals, utilities, healthcare, real estate, pharmaceuticals and medical technology, agribusiness and a global portfolio of financial holdings across all asset classes.

7) On June 6, private equity firm Silver Lake Partners announced a second investment in the company for an additional Rs 4,546.80 crore for a 0.93 percent stake. In early May, Silver Lake had announced a Rs 5,655.75 crore investment in Jio Platforms for a 1.15 percent stake. Both deals put together, Silver Lake has now invested Rs 10,202.55 crore for a 2.08 percent stake.

8) On June 7, RIL announced that Abu Dhabi Investment Authority (ADIA) will invest Rs 5,683.50 crore for a 1.16 percent stake in Jio Platforms. Abu Dhabi Investment Authority is a sovereign wealth fund owned by the Emirate of Abu Dhabi. ADIA manages a global investment portfolio that is diversified across more than two dozen asset classes and sub-categories.

9) On June 13, global investment firm TPG also announced that it will invest Rs 4,547 crore in Jio Platforms for a 0.93 percent stake. This was the ninth deal in the Reliance Industries technology arm in seven weeks. With $120 billion of assets under management, TPG owns stakes in global names like Airbnb, Uber, and Spotify among others.

10) On June 15, private equity firm L Catterton said it will invest  Rs 1,894.50 crore in Jio Platforms for a 0.39 percent stake. This was the tenth public investor in the Reliance Industries technology arm in seven weeks. L Catterton is the largest consumer-focused private equity firm in the world, managing roughly $20 billion of equity investments globally.

11) On June 18, Saudi Arabia's sovereign wealth fund PIF announced that it will invest Rs 11,367 crore in Jio Platforms for a 2.32 percent stake. Founded in 1971, PIF is among the largest sovereign wealth funds in the world with total estimated assets of nearly $400 billion. The company said that PIF’s investment marks the end of Jio's current phase of induction of financial partners.



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