TPG (previously known as Texas Pacific Group) will invest Rs. 4,546.80 crore (around $800 million) in Jio, Reliance Industries Limited (RIL) announced on Saturday. This is the same amount that was invested by Silver Lake in its second round earlier this month. For Rs. 4,546.80 crore, TPG will get 0.93 percent equity stake in Jio Platforms, the umbrella entity of Reliance Jio. The news of TPG’s investment comes just days after The Economic Times had reported of the talks between the firm and RIL.
TPG – Jio deal
With the recent investments, including today’s TPG money, RIL has now divested a total of 21.99 percent stake in Jio Platforms and raised Rs. 102,432.45 crore, with Facebook grabbing the biggest pie at 9.99 percent. Apart from Facebook and Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA have announced investments in Jio Platforms. The first investment, from Facebook, was revealed on April 22, 2020. RIL still owns over 78 percent stake in Jio.
According to a press note shared by Reliance, TPG is investing in Jio Platforms at an equity value of Rs. 4.91 lakh crore and an enterprise value of Rs. 5.16 lakh crore, both of these are same as last several investments made in the company.
Recent investments in Jio Platforms
|Investor in Jio||Investment||Stake in Jio|
|Rs. 43,574 crore||9.99 percent|
|Silver Lake Partners||Rs. 10,202.8 crore (2 rounds)||2.08 percent|
|Vista Equity Partners||Rs. 11,367 crore||2.32 percent|
|General Atlantic||Rs. 6,598 crore||1.34 percent|
|KKR||Rs. 11,367 crore||2.32 percent|
|Mubadala||Rs. 9,093.60 crore||1.85 percent|
|ADAI||Rs. 5,683.50 crore||1.16 percent|
|TPG||Rs. 4,546.80 crore||0.93 percent|
TPG is an American private equity firms that is prominently known for leveraged buyouts; however, it has also invested in several rising tech companies, including Airbnb, BookMyShow, Lenskart, McAfee, PropertyGuru, Uber, and Zscaler. It was established in 1992 and holds over $79 billion of asset.
To remind you, Reliance Jio that is the primary business of Jio Platforms kicked off its telecom operations on September 5, 2016 for the public. It currently has over 385 million subscribers across the country and the leading telecom operator by subscribers. Apart from Reliance Jio’s 4G LTE powered telecom operations, Jio Platforms also includes Jio Fiber broadband service, various Jio apps and services, and more. Jio Platforms is RIL’s triple play – Technology, Telecom, and E-Commerce.
“Today, I am happy to welcome TPG as valued investors in our continued efforts towards digitally empowering the lives of Indians through the creation of a digital ecosystem, said Mukesh Ambani, chairman and managing director of Reliance Industries, in a statement. “We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better.”