Ambani’s Jio secures $253m investment from Intel Capital

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The technology venture of billionaire Mukesh Ambani secured 18.95 billion rupees ($253 million/Dh929m) from Intel Capital, increasing a slew of investments since April that have reached a lot more than $15bn.

The investment arm of computer chip giant Intel decided to buy a 0.39 % stake in Jio Platforms, giving the business enterprise an equity value of $65bn, Ambani’s conglomerate Reliance Industries stated in a statement Friday.

Intel Capital joins global names including Facebook, KKR & Co and Silver Lake Companions in backing Mr Ambani’s bid to transform Reliance into a digital services giant and reduce its reliance on revenue from essential oil refining and petrochemicals.

“Through this investment, we are excited to greatly help fuel digital transformation in India, where Intel maintains a crucial presence,” Wendell Brooks, Intel Capital president, said in the statement.

Morgan Stanley acted while financial adviser to Reliance Industries.

Ambani’s digital unit has sold about 25 per cent in stakes and possesses said net debt reaches zero sooner than the March 2021 target it set this past year. Jio is likely to use its roughly 400 million wireless phone members as the cornerstone of an e-commerce and digital companies business.

The slew of stake sales have helped Reliance Industries shares twice since later March, and the stock traded at a record high on Friday.

Saudi Arabia's sovereign wealth fund, the general public Investment Fund, can be investing about $1.5bn found in Jio in return for a 2.32 % stake.

Abu Dhabi Investment Authority and also Mubadala Investment Company likewise bought stakes in the business with huge investments.

Adia has invested $753.4m for a 1.16 % equity stake in Jio, while Mubadala invested $1.2bn for a 1.85 % stake.
Source: https://www.thenational.ae

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