American multinational company Intel will invest Rs 1,894.50 crore in Reliance Industries' technology arm Jio Platforms, making it the twelfth high-profile investment in the firm in less than three months. The deal will translate into a 0.39 percent stake for Intel in RIL's digital arm.

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

With this investment, Jio Platforms has raised Rs 117,588.45 crore from leading technology investors including Facebook, Silver Lake Partners (two investments), Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, PIF and Intel. This makes investment in Jio Platforms the largest continuous by any company in the world.

The latest investment comes amid a slowing global economy, signifying India’s digital potential and global investors' faith in Jio’s business strategy.

Intel is one of the pioneering companies in the technology space and is known for its innovation. Intel Capital, through which the company has invested in Jio Platforms, invests globally in innovative companies with a focus on disruptive technology areas like cloud computing, artificial intelligence and 5G – opportunities.

The last big investment in Jio was by Saudi Arabia's sovereign wealth fund PIF that invested Rs 11,367 crore for a 2.32 percent stake.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, “We are extremely delighted to deepen our ties with technology leaders that embody our vision of transforming India into a leading Digital Society in the world. Intel is a true industry leader, working towards creating world-changing technology and innovations. Intel Capital has an outstanding record of being a valuable partner for leading technology companies globally. We are therefore

excited to work together with Intel to advance India’s capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians.”

Wendell Brooks, Intel Capital President, said, “Jio Platforms’ focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel’s purpose of delivering breakthrough technology that enriches lives. We believe digital access and data can transform business and society for the better. Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence.”

(Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)

First Published:Jul 3, 2020 8:05 AM IST