InvestorQ : How do you see the recent stake sale in Jio Platforms to Vista Equity Partners? Does it add further value to Reliance Jio?
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How do you see the recent stake sale in Jio Platforms to Vista Equity Partners? Does it add further value to Reliance Jio?

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vidhya Laxmi answered.
1 year ago
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The deal with Vista is at the same overall valuation as the recent stake sale to Silver Lake fund. Like the Silver Lake Fund, Vista Equity Partners is also a PE fund. Vista will invest Rs.11,367 crore in Jio Platforms for a 2.32% stake. This is exactly twice the stake of Silver Lakes at twice the price. Earlier, Jio Platforms had also sold a stake to Facebook, albeit at a lower valuation, but that was more of a synergy deal than pure private equity. With this deal, RIL has now garnered Rs.60,600 crore from the sale of 13.3% stake in Jio Platforms. If you add up the Rs.54,000 crore rights issue, then RIL should be close to becoming zero-net debt by March 2021. This shows that serious long term technology investors are seeing a lot of value in the digital ecosystem that Reliance is creating via Jio Platforms.

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