Abu Dhabi Mubadala to buy 1.85% stakes worth Rs 9,093 cr in Jio
Abu Dhabi Mubadala: Reliance Industries Jio bagged another offer from Abu Dhabi base sovereign investor Mubadala Investment Company. However, this is the sixth consecutive investment to the Jio Platform. The company will invest almost Rs 9,093.60 crores for 1.85% stakes in the Jio Digital Platform. Whereas the total amount includes equity value of Rs 4.91 lakh crores and an enterprise value of Rs 5.16 lakh crore.
Mukesh Ambani, Chairman, MD of Reliance Industries said, “I am delighted to be a partner of Mubadala, one of the largest global investors. However, our partnership will help India’s digital growth towards the largest digital nation across the world. He also mentioned about the global connections that Mubadala firm has in UAE Knowledge-based economy.
On the other side, analysts expecting that the Reliance Industry has a target of Rs 85,000-Rs 90,000 crores against investors. So far the company received almost Rs 78,562 crores from Facebook, Silver Lake, Vista Equity, General Atlantic, and KKR firm. All these companies hold almost 17.12% stakes in the Jio Digital Platform. After the latest investment from Mubadala, the latest holdings reached almost 18.97% to Rs 87,655.35 crores.
Besides, the investments help the company to become a zero net debt in March 2021. Whereas in this quarter ended in March, the companies outstanding debt stood at Rs 3.36 lakh crore and cash at Rs 1.75 crore. This will lead to bringing the net debt of the company to Rs 1.61 lakh crore.
Meanwhile, Reliance Industries raised funds of Rs 53,124 crores via its largest-ever rights issue. The rights issue of the company ends on Wednesday, June 3rd.
Mubadala investment firm is one of the globally integrated economies that are driving global growth and challenges. “This partnership will provide transformative information and communication technology also include cognitive computing, ICT infrastructure, telecoms, and satellite operations,”. However, Morgan Stanley is a financial advisor to Reliance and AZB & Partners. While Davis Polk acted as a legal counsel.
“Jio Digital Platform is one of the largest communication and connective companies in India. As an investing partner, we are committed to the growth of India’s digital platform further, said Khaldoon Al Mubarak, Managing Director, and CEO, Mubadala Investment Company.
However, the shares of Reliance Industries Limited reported a bullish trend in the stock market. The company gained 18.55 points with a 1.17% increase and reached 1,598.05 INR. While in BSE, the company gained 17.75 points with a 1.12% increase and reached 1,598.35 INR.
Stock Market June 5th:
On Friday, both Sensex and Nifty reported a bullish trend in the stock market after bearish reports in the last session. The Sensex is trading above 34,100 levels, and Nifty is trading above 10,100 levels in the stock market. The Sensex gained 194.72 points with a 0.57% increase and reached a 34,174.42 level. While Nifty gained 80.35 points with a 0.80% increase and reached 10,109.80 level.
On the other side, the number of coronavirus cases in India reached 2,16,919 as of Friday, June 5th, and deaths reached 6,075.
In the border market, the S&P BSE Smallcap on Friday reported a bullish trend in the stock market. It gained 225.78 points with a 1.95% increase and reached 11,790.59 level. The S&P BSE Midcap gained 131.56 points with a 1.07% increase and reached 12,465.28 level. While Nifty Bank gained 340.65 points with a 1.67% increase and reached 20,731.10 level.
Top Gainers on June 5th: Tata Motors, Bharti Infratel, Tata Steel, Hindalco, and JSW Steel are the top gainers in today’s stock market
Top Losers on June 5th: TCS, Bajaj Auto, HDFC, Infosys, and Hero Motocorp are the top losers in today’s stock market.