Reliance Jio’s 2.23% stake sale to Vista means its raised $7.95 billion in under three weeks

Reliance Jio’s 2.23% stake sale to Vista means its raised $7.95 billion in under three weeks
US-based Vista Equity Partners buys 2.32% stake in Reliance JioBCCL
  • Reliance Jio snags its third investment in two weeks worth $1.5 billion from Vista for a 2.32% stake.
  • Reliance Industries, Jio's parent company, saw its share price rise by over 2% in early morning trade.
  • Mukesh Ambani has now raised $7.95 billion for Reliance Industries telecom subsidiary in less than three weeks.
  • Like Silver Lake, Vista is a leading global investment firm focused on investing in technology-enabled companies.
India’s richest man, Mukesh Ambani, is on roll scoring a third investment for Reliance Jio within a matter of three weeks. Global investment firm Vista Equity Partners is buying a 2.32% stake in Reliance Industries’ telecom subsidiary for a whopping $1.5 billion. Reliance Industries, Jio's parent company, saw a 2% hike in its share price during early morning trade opening at ₹1,541.

Reliance Jio’s 2.23% stake sale to Vista means its raised $7.95 billion in under three weeks
RIL share price over the past month

Jio has cumulatively raised $7.95 billion in the last month, which will go a long way in settling its debt while also making sure that it has enough funds to participate in the bid of 5G in India. US-based Vista will be the third-largest equity investor in Jio Platforms after Reliance Industries and Facebook. “We believe in the potential of the Digital Society that Jio is building for India,” said Vista Chairman and CEO, Robert F. Smith.

Facebook$5.7 billion9.9%
Silver Lake$750 million1.15%
Vista$1.5 billion2.23%

As with Silver Lake, Vista’s investment is at a higher premium than Facebook paid for its piece of the pice in Ambani’s enterprise — a 12.5% premium. Even though Jio Platforms isn’t listed on any index, its market capitalization is estimated to be even higher than Hindustan Unilever or even Reliance Industries making it the fourth-biggest company in India.

Here’s what you need to know about Vista Equity Partners
Vista currently has investments in 26 companies, accounting to Crunch Base, having invested in nearly 53 odd organizations since its inception in August 2000. Most of then have been technology platforms focused on software development.

For instance, In 2016, it picked up Marketo for $1.79 billion and sold it to Abobe for $4.75 billion two years later — more than doubling on its initial investment.

Its most recent acquisition was Tripleseat, a web-based sales and event management solution, in March 2020. Prior to that, it bought a majority stake in Acquia in September 2019 for $1 billion.

See also:
Facebook’s investment in Reliance Jio boosts RIL share value by ₹50,000 crore

Both Silver Lake and Mukesh Ambani hope that Reliance Jio will replicate Alibaba's magic⁠ — and this time Zuckerberg will get a chunk

WhatsApp is the secret sauce in the deal between Facebook and Reliance Jio