Reliance Industries on Friday announced that tech giant and electronic chip manufacturer Intel’s investment arm will buy a 0.39% stake in Jio Platforms for Rs 1,894 crore. Intel Capital is the 12th company to join the list of global giants who have invested in Jio Platforms over the last two months.
“Intel Capital will invest Rs 1,894.50 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore,” Reliance said in a press release. The company added that after the deal with Intel, its total investments have risen to Rs 1,17,588.45 crore.
Reliance Industries Chairperson Mukesh Ambani said that Intel embodies his company’s vision to digitally empower India. “Intel Capital has an outstanding record of being a valuable partner for leading technology companies globally,” he was quoted as saying in Reliance’s statement. “We are therefore excited to work together with Intel to advance India’s capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians.”
Intel Capital President Wendell Brooks, on the other hand, said that his firm was enthusiastic about ushering in digital transformation in India, where Intel has an important presence. “Jio Platforms’ focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel’s purpose of delivering breakthrough technology that enriches lives,” he said. “We believe digital access and data can transform business and society for the better.”
Last month, American companies TPG Capital and L Catterton had announced investments in Jio Platforms. Saudi Arabia-based wealth fund Public Investment Fund had bought a 2.32% stake in Jio Platforms for Rs 11,367 crore. Abu Dhabi Investment Authority had also purchased a 1.16% stake in Jio Platforms for Rs 5,683.5 crore. Facebook Inc bought a 9.99% stake in Jio Platforms for Rs 43,574 crore in May.
On June 19, Ambani had announced that Reliance Industries had become “net-debt free” after raising over Rs 1.68 lakh crore in 58 days. He had assured his shareholders last year that Reliance would eliminate its net debt by March, 2021. In June, Reliance Industries also became the first Indian company to hit a market valuation of $150 billion (Rs 11.44 lakh crore).