Based Intel Capital To Buy Rs 1,895-Crore Stake In Jio Platforms

Joanna Estrada
July 3, 2020

The deal with the technology leader is set to help Reliance Jio push its digital reach.

As per exchange filing, the USA semiconductor giant Intel Capital will invest Rs 1,894.50 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore.

The sale of the 0.39% stake for 18.95 billion rupees gives Jio Platforms an enterprise value of 5.16 trillion rupees ($69 billion), Reliance said in a statement.

The oil-to-retail conglomerate, controlled by India's richest man Mukesh Ambani, plans to wrap up most of its private fundraising for Jio Platforms by the third quarter of 2020 and then explore a potential public listing in the United States in 2021, a source familiar with matter has said. With this the total investment that Reliance Industries has managed to attract since April this year has now gone up to Rs 1.17 lakh crore.

Intel is one of the pioneering companies in the technology space and is known for its innovation.

This makes it the 12th investment in Jio Platforms over the past few weeks, a list which includes Facebook, Silver Lake Partners, Vista Equity Partners, General Atlantic, KKR, Mubadala, Abu Dhabi Investment Authority, TPG, L Catterton and PIF.

Intel is the leader in the semiconductor industry, shaping the data-centric future with computing and communications technology that is the foundation of global innovations.

Intel Capital invests in innovative startups targeting artificial intelligence, autonomous vehicles, datacenter and cloud, 5G, next-generation compute and a wide range of other disruptive technologies. The last firm to invest in Jio Platforms before Intel Capital came in was PIF with a ₹11,367 crore investment.

"Jio Platforms' focus on applying its impressive engineering capabilities to bring the power of low-priced digital services to India aligns with Intel's goal of delivering breakthrough technology that enriches lives. Through this investment, we are excited to help fuel digital transformation in India, where Intel maintains an important presence", said Wendell Brooks, Intel Capital President.

Other reports by Click Lancashire

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