Jio Platforms engaged in an equity deal with Facebook back in April. It was a $5.7 billion (Rs 43,574 crore) deal which would result in Jio giving away a minority stake of 9.99% to Facebook. This deal between Reliance Jio and Facebook is considered as the biggest FDI in India’s tech landscape. Reliance Jio has now received the amount of the deal. Alongside, it has given away a 9.99% stake of its company as well. The money received was from Jaadhu Holdings and the company stakes were also transferred to Jaadhu Holdings.
Reliance Jio Got the Money From Jaadhu Holdings
In a statement to Bombay Stock Exchange (BSE), Reliance Industries Limited (RIL) said, “We hereby inform that, after receipt of all requisite approvals, Jio Platforms Limited, a subsidiary of the Company (Reliance Industries), today received the subscription amount of Rs43,574 Crore from Jaadhu Holdings, LLC (a wholly-owned subsidiary of Facebook Inc). Jio Platforms Limited has allotted equity shares to Jaadhu Holdings following which Jaadhu Holdings holds 9.99% of the fully diluted equity share capital of Jio Platforms Limited.”
It was a very big deal and thus Competition Commission of India (CCI) had overlooked the deal when it was made. But just a few days back, CCI approved the deal implying that everything about the deal is fair. There won’t be more approvals needed as the deal made is below 10% threshold.
Jio Platforms is the leading telecom operator in India with over 400 million subscribers now. It has played a huge role in helping Reliance Industries Limited (RIL) go debt-free. RIL announced a few days back that it has cleared all of its debt with the help of Rights Issue and fundraising from Jio Platforms.
Jio Platforms has sold 25.09% of its company stakes and in turn, raised Rs 1.18 lakh crore. From the Rights Issue, RIL managed to raise 53,125 crores. Apart from Facebook, the other 10 investors in the company are — Mubadala and Abu Dhabi Investment Authority, Silver Lake, General Atlantic, Vista Equity Partners, KKR, L Catterton, TPG, Intel Capital, and Saudi Arabia’s Public Investment Fund (PIF).
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