Abu Dhabi Investment Authority (ADIA) will invest Rs 5,683.50 crore for a 1.16 percent stake in Jio Platforms, it was announced on Sunday. ADIA's fund infusion is eighth investment in Jio Platforms, the digital arm of Reliance Industries, over the past seven weeks.

The ADIA deal values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.

Abu Dhabi Investment Authority is a sovereign wealth fund of the Abu Dhabi emirate of the United Arab Emirates. ADIA manages a global investment portfolio that is diversified across more than two dozen asset classes and sub-categories.

Here are key highlights from the ADIA-Jio Platforms deal:

This is an unprecedented eighth investment in Jio Platforms in less than seven weeks.

The investment is Rs 5,683.50 crore for a 1.16 percent stake in Jio Platforms.

With this investment, Jio Platforms has raised Rs 97,885.65 crore from leading technology investors including Facebook, Silver Lake Partners (two investments), Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA. At Rs 97,885.65 crore or $12.96 billion, which is the largest continuous funds raise by a company anywhere in the world.

ADIA’s investment is at a similar valuation to the other recent PE investments in Jio – equity valuation of Rs 4.91 lakh crore and enterprise valuation of Rs 5.16 lakh crore

This investment is another strong endorsement of Jio’s tech capabilities, disruptive business model and secular long-term growth potential

This investment further reaffirms Jio’s continuing attraction among global investors for:

a. being the best representative of India’s digital potential

b. deep understanding of the Indian markets

c. the rapid digitisation opportunity post-covid and

d. capabilities to bring cutting-edge technologies and tools such as AI, Blockchain, AR/VR, big data into play for all Indians

Abu Dhabi Investment Authority has been prudently investing funds on behalf of Government of Abu Dhabi since 1976. ADIA is focused on investments that lead to long-term value creation.

ADIA manages a global investment portfolio that is diversified across more than two dozen asset classes and sub-categories.

Disclaimer: Reliance Industries Ltd., which also owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

First Published:Jun 7, 2020 7:43 PM IST