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Amazing! Jio Platforms gets eight investments in seven weeks aggregating Rs. 97,886 crores.

The latest investment is by Abu Dhabi Investment Authority (ADIA) of Rs. 5,683.50 crores for 1.16% stake valuing Jio Platforms at Rs. 4.91 lakh crores. According to RIL’s presentation on annual results for the year ended 31 March 2020, RIL’s digital services had revenue of Rs. 54,216 crores, EBITDA of Rs. 21,654 crores and net profit of Rs. 5,562 crores.

Revenue, EBITDA and PAT multiples are over 9, 22 and 88 respectively.

Total market cap of Reliance Industries Limited (RIL) on Monday 8 June 2020 was Rs. 9.96 lakh crores. This means that the value of Jio Platforms is approximately half of RIL’s value.

Investors in Jio Platforms include Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA. 

The total stake taken by these investors in Jio Platforms is 21.06%. Facebook has the largest investment with 9.99%.

As of 31 March 2020, Jio had 38.75 crore subscribers and is the largest telecom player in India by number of users. According to TRAI, the total telephone and broadband subscribers in India as of 31 December 2019 were 117.24 crores and 66.19 crores respectively. Figures for 31 March 2020 are not yet available.

RIL, in partnership with WhatsApp, has already launched JioMart in 200 cities to compete with the likes of Amazon, Flipkart and BigBasket.

Apart from investments in Jio Platforms, RIL also had a successful rights issue of Rs.53,124 crore, India’s largest rights issue. In its presentation on annual results for year ended 31 March 2020, RIL has also mentioned that the due diligence by Saudi Aramco for its acquisition of 20% stake in RI’s oil to chemical’s business is on track.