Intel to invest Rs1,894 crore in Jio Platforms of India’s Reliance

Reliance Industries Limited (RIL) and Jio Platforms Limited on Friday announced that Intel Capital will invest Rs1,894 crore in Jio Platforms at an equity value of Rs4.91 lakh crore and an enterprise value of Rs5.16 lakh crore.

Intel Capital’s investment will translate into a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis.

Intel Capital, the American chipmaker, joins the list of marquee firms who have recently invested in Jio Platforms, taking the total investment amount to Rs1.17 lakh crore.

Jio Platforms Limited is an Indian digital services company and a subsidiary of Reliance Industries Limited. Established in 2019, the company owns India’s largest mobile network operator Jio and other digital businesses of Reliance.

Jio Platforms, a wholly-owned subsidiary of Reliance Industries, is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with more than 388 million subscribers.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said: “We are extremely delighted to deepen our ties with technology leaders that embody our vision of transforming India into a leading Digital Society in the world. Intel is a true industry leader, working towards creating world-changing technology and innovations”.

“Intel Capital has an outstanding record of being a valuable partner for leading technology companies globally. We are therefore excited to work together with Intel to advance India’s capabilities in cutting-edge technologies that will empower all sectors of our economy and improve the quality of life of 1.3 billion Indians”, Ambani added.

Wendell Brooks, Intel Capital President, said: “Jio Platforms’ focus on applying its impressive engineering capabilities to bring the power of low-cost digital services to India aligns with Intel’s purpose of delivering breakthrough technology that enriches lives. We believe digital access and data can transform business and society for the better. Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence.”

Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.

Jio’s vision is to enable a Digital India for 1.3 billion people and businesses across the country, including small merchants, micro-businesses and farmers so that all of them can enjoy the fruits of inclusive growth.

Intel Capital invests globally in innovative companies with a focus on disruptive technology areas like cloud computing, artificial intelligence and 5G - opportunities where Jio is also innovating and investing for growth.

Intel Capital is the investment arm of Intel Corporation, a leader in the semiconductor industry, shaping the data-centric future with computing and communications technology that is the foundation of global innovations. Intel has operated in India for more than two decades and today employs thousands of employees there with state-of-the-art design facilities in Bengaluru and Hyderabad.

Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.

Asset monetisation in Jio Platforms along with the $7 billion rights issue should reduce Reliance Industries’ net debt by more than half, according to a report by Morgan Stanley.

It said that multiple catalysts are in play with faster than expected deleveraging, improving demand and margin outlook on refining and chemicals, top quartile earnings CAGR of 23 per cent over F20-23, and digitisation, supporting multiples.

Reliance Industries announced on Friday an investment of $252 million by Intel Capital for a 0.39 per cent stake in Jio Platforms.

Meanwhile, the key Indian equity indices rose on Friday morning with the Sensex traded above the psychological mark of 36,000 points.

The Nifty50 on the National Stock Exchange (NSE) was also traded just above the 10,600 mark. The domestic indices rose tracking a positive trend in the Asian markets.

Sensex closed at 36,021.42, higher by 177.72 points or 0.50 per cent from its previous close of 35,843.70.

Nifty50 closed at 10,607.35, higher by 55.65 points or 0.53 per cent from its previous close.

The top gainers on the Sensex were Bajaj Auto, Bharti Airtel and Hero MotoCorp, while the major losers were Tata Steel, HDFC Bank and IndusInd Bank.

Indo-Asian News Service