Reliance Industries shares gain nearly 2% after company announces over Rs 6,500 deal with General Atlantic

Shares of Reliance Industries on Monday gained nearly 2 percent after the company announced the sale of 1.34 percent stake in its digital unit to global equity firm General Atlantic for Rs 6,598.38 crore

Press Trust of India May 18, 2020 12:10:27 IST
Reliance Industries shares gain nearly 2% after company announces over Rs 6,500 deal with General Atlantic

New Delhi: Shares of Reliance Industries on Monday gained nearly 2 percent after the company announced the sale of 1.34 percent stake in its digital unit to global equity firm General Atlantic for Rs 6,598.38 crore.

The heavyweight stock rose by 1.58 percent to Rs 1,482 on the BSE in opening session.

On the NSE, shares of the company went advanced 1.54 percent to Rs 1,482.

However, as the session progressed, the company surrendered the early gains and was quoting 1.07 percent down at Rs 1,443.25 on the BSE in line with weak market sentiment.

Reliance Industries shares gain nearly 2 after company announces over Rs 6500 deal with General Atlantic

Representational image. Reuters.

Reliance Industries on Sunday announced the sale of 1.34 percent stake in its digital unit to global equity firm General Atlantic for Rs 6,598.38 crore, the fourth deal in less than four weeks that will inject a combined Rs 67,194.75 crore in the oil-to-telecom conglomerate to help it pare debt.

"This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. General Atlantic's investment will translate into a 1.34 percent equity stake in Jio Platforms on a fully diluted basis," the company said in a statement.

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The deal follows Facebook picking up a 9.99 percent stake in the firm that houses India's youngest but largest telecom firm on 22 April for Rs 43,574 crore.

Within days of that deal, Silver Lake - the world's largest tech investor - bought a 1.15 percent stake in Jio Platforms for Rs 5,665.75 crore. On May 8, US-based Vista Equity Partners bought 2.32 percent stake in Jio Platforms for Rs 11,367 crore.

Meanwhile, Reliance Industries’ Rs 53,125-crore rights issue will open for the subscription of shareholders on 20 May and will close on 3 June.

Shareholders will have to pay only 25 percent for subscribing to the issue, and the balance will have to be paid in two installments in May and November next year, the company said.

(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)

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