Google will pick up 7.7% stake in Reliance Industries’ technology venture for ₹33,737 crore, richest Indian Mukesh Ambani said on Wednesday.
“We are delighted to welcome Google as a strategic investor in Jio Platforms. We have signed a binding partnership and an investment agreement under which Google will invest ₹33,737 crores for a 7.7% stake in Jio Platforms,” Mr. Ambani said at the company’s annual general meeting.
This takes the cumulative fund raising by Reliance in less than three months to ₹2,12,809 crore, he said.
This would be a rare instance of two FANG — Facebook, Apple, Netflix, Google — companies investing in one firm anywhere in the world and is another stamp of approval from global digital behemoths who now accept RIL turning a technology and digital firm from an energy to retail focussed conglomerate, say analysts. Facebook has invested Rs 43,574 crore for a 9.9% stake.
Shares of parent RIL closed at Rs 1845.60, down by 3.71% on the BSE on Wednesday.
“It is in excess of our net debt of Rs 1,61,035 crore at the end of FY19-20,” he said. “Reliance is now truly a zero net debt company, well ahead of my goal of March 2021. It has an extremely strong Balance Sheet that will support growth plans for its three Hyper-Growth Engines – Jio, Retail and O2C.”
Reliance has concluded its JV with BP in the existing fuel retailing business. “BP has invested Rs 7,629 crore for their 49 per cent stake in the JV,” he said. ANZ BAL BAL.
