Jio Gets Rs 43,574 Crore, Completes Facebook Deal

Jio platforms Ltd, a unit of Reliance Industries, received ₹43,574 crore from US social media giant Facebook in exchange for a 9.99% stake, marking the culmination of a deal that was possibly the largest FDI investment in India’s tech landscape.

“After receipt of all requisite ap rovals, Jio Platforms Ltd, a subsidiary of the company, today received the subscription amount of ₹43,574 crore from Jaadhu Holdings LLC (a wholly-owned subsidiary of Facebook),” Reliance Industries said in a notice to the BSE late Tuesday.

Jio Platforms has allotted shares to Jaadhu Holdings, which now holds 9.99% of Jio Platform’s fully diluted equity share capital, Reliance said.

The Competition Commission of India had approved Facebook’s investment in Jio Platforms less than two weeks ago. ET reported in its June 25 edition that the deal won’t need further approvals because the acquisition was below the 10% threshold.

The transaction, announced on April 22, was touted as the largest investment for a minority stake by a technology company globally. It was also said to be the largest foreign direct investment in India’s technology sector.

Reliance shares fell 1.48% to ₹1,823.95 at the close on the BSE. The deal announcement came after market hours.

Jio Platforms houses Reliance’s telecom business under Reliance Jio Infocomm, the largest in the country with almost 400 million subscribers, besides other digital properties and investments.

Facebook was the first of 11 global investors that are buying a total 25.09% stake in Jio Platforms for ₹1.18 lakh crore. These investments, along with ₹53,124 crore from a rights issue, are helping Reliance to achieve its aim of becoming net debt-free.

The other investors are Abu Dhabi’s two largest sovereign investment arms, Abu Dhabi Investment Authority and Mubadala, along with private equity firms Silver Lake, Vista Equity Partners, General Atlantic, KKR, TPG, L Catterton, Saudi Arabia’s Public Investment Fund (PIF) and Intel Capital.

The main focus of the Facebook-Jio Platforms deal is to come up with digital solutions for 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector.

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