Reliance Industries (RIL) rose 0.57% to Rs 1,834.35 after Jio Platforms received the subscription amount of Rs 43,574 crore from Facebook for a 9.99% stake.
Jio Platforms, a subsidiary of RIL, on Tuesday (7 July) received the subscription amount of Rs 43,574 crore from Jaadhu Holdings, LLC (a wholly owned subsidiary of Facebook Inc). Jio Platforms has allotted equity shares to Jaadhu Holdings following which Jaadhu Holdings holds 9.99% of the fully diluted equity share capital of Jio Platforms.In April this year, Facebook had signed binding agreements for an investment of Rs 43,574 crore into Jio Platforms for a 9.99% stake.
Jio Platforms is a next-generation technology company building a digital society for Indiaby bringing together Jio's leading digital apps, digital ecosystems and India's high-speed connectivity platform under one umbrella. Reliance Jio Infocomm, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.
Jio Platforms has raised Rs 117,588.45 crore from leading global investors including Facebook, Intel Capital, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton and PIF since 22 April 2020.
In June, RIL announced that it became net debt free. RIL's net-debt was Rs 161,035 crore, as on 31 March 2020. Besides investments by global tech investors in Jio Platforms, RIL raised Rs 53,124.20 crore through rights issue of shares. The rights issue opened for subscription on 20 May 2020 and closed on 3 June 2020.
On a consolidated basis, RIL's net profit fell 37.2% to Rs 6,546 crore on 2.4% decline in net sales to Rs 1,36,240 crore in Q4 March 2020 over Q4 March 2019.
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RIL is India's largest private sector company. RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
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