scorecardReliance Jio’s valuation jumps more than half a billion dollars in just 12 days, thanks to Silver Lake
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Reliance Jio’s valuation jumps more than half a billion dollars in just 12 days, thanks to Silver Lake

Reliance Jio’s valuation jumps more than half a billion dollars in just 12 days, thanks to Silver Lake
Business2 min read

  • Private equity firm Silver Lake has bought 1.15% stake in Mukesh Ambani's Reliance Jio for $750 million.
  • At this valuation, the deal is worth 52% of parent company Reliance Industries’ total market capitalization.
  • It’s also 23% more than what Facebook paid for its stake in Reliance Jio less than two weeks ago.
A US-based private equity firm, Silver Lake, has bought a 1.15% stake in Reliance Jio for $750 million. It has paid the Mukesh Ambani-owned telecom enterprise 23% more than what Facebook paid less than two weeks ago.

At this equity value, this is 52% of Reliance Industries’ (RIL) total market cap. Now, it seems like everyone wants a piece of the pie of the three-year-old telecom enterprise that is now one of the two leading operators in India with a total of 370 million subscribers at the end of March.


The deal is the second stake sale in Jio in the last month aimed at reducing the debt of Reliance Industries (RIL), which stood at over $44 billion at the end of March 2020.

However, the share price of Jio’s parent RIL remained under pressure as the company’s mainstay energy business (over three-fourths of the revenue) was squeezed by the crash in crude oil prices.



Reliance Jio is now worth 1.75 times that of its closest competitor Airtel, whose market cap stood at ₹2.8 lakh crore.

Company

Market capitalisation

Reliance Jio

₹ 4.9 lakh crore

Airtel

₹ 2.8 lakh crore

Vodafone Idea

₹ 12,068 crore


See also:
Silver Lake buy 1.15% Jio shares in Rs. 5655.75 Crore

Here's how Reliance Industries rights issue may affect the share price

RIL and BP cite COVID-19 lockdown for pushing back production from KG-D6⁠— the real reason may the price

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