Abu Dhabi’s ADIA to invest $752m in Reliance’s Jio Platforms

Indian conglomerate Reliance Industries announced securing a further investment of INR 56.83 billion ($752 million) for its digital services platform Jio Platforms from a fully-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

The new investment values Jio Platforms at an equity value of INR 4.91 lakh crore and an enterprise value of INR 5.16 lakh crore.

ADIA will acquire a stake of 1.16% in the Indian digital services platform through the investment.

Founded in 1976, ADIA is a globally-diversified investment institution that invests funds on behalf of the Abu Dhabi government. ADIA has a global investment portfolio that is diversified across more than 24 asset classes and sub-categories.

Hamad Shahwan Aldhaheri – Executive Director of the Private Equities Department at ADIA said: “Jio Platforms is at the forefront of India’s digital revolution, poised to benefit from major socio-economic developments and the transformative effects of technology on the way people live and work.

“The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution. Our investment in Jio is a further demonstration of ADIA’s ability to draw on deep regional and sector expertise to invest globally in market leading companies and alongside proven partners.”

Reliance Industries has so far bagged investments totaling INR 978.85 billion ($12.96bn) for Jio Platforms from Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA in less than two months.

Focused on providing digital services across India, Jio Platforms is said to have more than 388 million subscribers. Jio Platforms claims to have made considerable investments across its digital ecosystem, powered by technologies spanning broadband connectivity, cloud and edge computing, smart devices, artificial intelligence, Internet of Things, big data analytics, augmented and mixed reality, and blockchain.

Mukesh Ambani – Chairman and Managing Director of Reliance Industries said: “I am delighted that ADIA, with its track record of more than four decades of successful long-term value investing across the world, is partnering with Jio Platforms in its mission to take India to digital leadership and generate inclusive growth opportunities. This investment is a strong endorsement of our strategy and India’s potential.”

The investment of ADIA in Jio Platforms is subject to regulatory and other customary approvals. Reliance Industries had engaged Morgan Stanley as financial advisor, while AZB & Partners, and Davis Polk & Wardwell were the legal counsel.

Last week, Mubadala Investment, an Abu Dhabi-based sovereign investor agreed to acquire a stake of 1.85% in Jio Platforms for INR 90.93 billion ($1.2 billion). The digital services platform of Reliance Industries also bagged an additional investment of INR 45.46 billion ($600 million) from Silver Lake and its co-investors, which had already announced an investment of INR 56.55 billion ($750 million) in Jio Platforms in May 2020.

Silver Lake will hold a total of 2.08% stake in the Indian digital services provider.