Mumbai: Facebook on Wednesday announced USD 5.7 billion or Rs.43574 in Reliance Jio, a wholly owned subsidiary of Reliance Industries Ltd (RIL). After this investment Facebook will acquire 9.99% equity stake to become the largest minority shareholder of Jio.
RIL gains over 7% at Rs.1323.85 on the Bombay Stock Exchange (BSE).
“This investment by Facebook values Jio Platforms at Rs. 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs. 70 to a US Dollar). Facebook’s investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis” said Jio.
Facebook’s investment in Jio is regarded as the largest FDI in the technology sector in India. The investment values Jio Platforms at Rs. 4.62 lakh crore which is amongst the top 5 listed companies in India by market capitalization.
While the deal will reduce the debt burden of RIL, it has brought an opportunity for the social media giant to increase its foothold in the Indian market, one of the fastest-growing markets of the world.
“…In the post-Corona era, I am confident of India’s economic recovery and resurgence in the shortest period of time. The partnership will surely make an important contribution to this transformation” said.
RIL and WhatsApp have also entered into a commercial partnership to accelerate Reliance Retail’s New Commerce business on the JioMart platform
“One focus of our collaboration with Jio will be creating new ways for people and businesses to operate more effectively in the growing digital economy,” said Facebook in a statement.