Reliance industries limited (Ril) is a giant in India. It is affected due to coronavirus. The petroleum oil prices have gone down and so is its consumption. Reliance share value has gone down. Ril has a huge debt, and it has decided to raise funds to nullify debts by 2021 through investments. Silver lake share claims stake 1.15% in JIO platforms at cost of Rs 5,655.75 crore (us$ 746.8 million). Silver lake JIO will enjoy on mutual strengths. Read full news about Silver Lake Investment in JIO India
- Reliance JIO gets higher valuation from pe giant silver lake
- 12.5% premium over the Facebook deal
- Reliance industries limited (ril) plans to raise Rs 50k crores by selling shares
- Biggest of its kind in India to cut debts
RELIANCE JIO CONTINUES TO GET ATTENTION OF PRIVATE EQUITY GIANTS
After Facebook, US-based PE giant Silver Lake is keen to buy a 1.15% share of Reliance group company Jio Platforms at valuation at an equity value of Rs 4.9 Lakh Crore and an enterprise value of Rs 5.15 Lakh Crore (US$ 65 billion). Silver Lake evaluated 12.5 percent higher than the valuation of Facebook. Facebook has bought a 9.99 percent share of Jio. Silver Lake will pay Rs 5,655.75 Crore (US$ 746.8 million).
EARLIER FACEBOOK INVESTED IN JIO
The readers know that Facebook made a deal two weeks ago by spending US$ 5.7 billion to take a 9.99 percent stake in Jio. Earlier Facebook made a bigger deal in 2014 to buy WhatsApp in US$ 22 billion. Facebook – Jio partnership will explore expanding e-commerce in India.
HOW GIANT IS SILVER LAKE?
Having its headquarter in The Menlo Park Silver Lake was launched in 1999 with a focus on investment in technology. The technology investment global leader has US$43 billion combined assets and committed capital. It has invested in many world-renowned tech firms including consultancy form Gartner, Ant Financial of Alibaba, video game engine maker Unity, audio and video communication service Skype, Chinese ride-hailing giant Didi Chuxing, and computer giant Dell.
RELIANCE IS INDIA’S GIANT
Readers know Reliance Industries is most valuable in the capital market. Jio platform is a subsidiary of Reliance Industries and has 388 million subscribers. It started its commercial operation in 2016 and offered bulk 4G data and voice calls for six months to users free of cost. It has become India’s top telecom operator. Jio Platforms runs several other services including JioSaavn – music streaming service, Jio TV, JioPay, smartphones, broadband business.
SILVER LAKE HAS INVESTED IN MANY LEADERS
Jio is not the only choice of Silver Lake this year but it invested in Airbnb and Expedia in March. PE giant firm Silver Lake also invested US$ 1 billion in Twitter and co-led around in Waymo. In India, earlier long back in 2013, Silver Lake invested in Eka, a startup engaged in commodity trading and risk management software based in Bangalore.
WHY THESE INVESTMENTS GOOD FOR RIL?
Mukesh Ambani, excited with this partnership said technology and finance leader Silver Lake with its global technology relationship will help in the transformation of Indian Digital Society. It is to be remembered by the readers that Ambani had committed to its investors to cut net debt of US$21 billion to nil by 2021.
Also Read: Facebook invests ₹ 43,574 crores in Reliance Jio
Coronavirus outbreak affected the core business of the Reliance group of oil refining and petrochemicals and dipped its net profit by 37 percent in the quarter ended on March 31. Reliance Jio will build a solid foundation for realizing Digital India’s vision for India’s people and businesses across the nation more particularly for farmers, micro-businesses, and small businesses.
WHY SILVER LAKE LIKE JIO?
Co-chief executive and managing partner at Silver Lake Egon Durban expressed his pleasure and honor in partnering with Mukesh Ambani and Reliance Jio. He further said that Jio has created extraordinary engineering capabilities and made available to the mass consumers and the small business populations at exceptionally low cost.
SILVER LAKE IS EXIT-FOCUSED INVESTOR
Silver Lake is a bold investor who invests in potential companies at the time of crisis. It has invested in Reliance Jio at the time of Covid19 crisis. It had earlier invested US$ 1.9 billion in Skype and achieved three time return in investment.
WHO IS TRUE EXIT BASED INVESTOR?
A soul gets human birth and worldly pleasures due to his past pure deeds. He achieves higher education, precious house, glorifying business opportunity. He can buy costly items available on earth. He can become the owner of Reliance or Silver Lake or Facebook or Microsoft. Rarely he gets the opportunity of realizing Eternal Truth.
Silver Lake Investment in JIO India: He may build big Temples or donate a huge amount of money to Church or may do social welfare activities. But it all is not enough. Doing so he can not leave this illusory world. He can not escape from the vicious cycle of birth and death. Such souls do not qualify to certify Exit Based Investor.
WHAT SHOULD A BOLD INVESTOR DO?
True Exit Based Investor invests precious time in understanding The Absolute, Absolute Truth, and process of liberation from this illusory world to Eternal Abode. The absolute (Kabir Saheb) comes to earth and He or His Enlightened Saint (Jagatguru Rampal JI Maharaj) blesses with The Eternal Knowledge to the true seeker. Following the instructions of Enlightened Saint, the seeker attains wisdom, freedom from the bondage of illusory power, and reaches the door of liberation. This way, Exit Based Investor receives a dividend in terms of worldly pleasures and finds benefits in terms of salvation.