US based global investment firm KKR became the latest company to invest in Jio Platforms, a wholly-owned subsidiary of Mukesh Ambani’s Reliance Industries Limited (RIL).
RIL on Friday announced that KKR will invest Rs 11,367 crore in Jio Platforms and it will translate to 2.32 per cent equity stake in Reliance’s digital services platform.
Some of the other major names that have invested in Jio Platforms include global firms like Facebook, Silver Lake, Vista, General Atlantic.
One of the key ideas behind the fresh investments is to raise funds and ensure that RIL meets its target of becoming a zero net debt company by March 2021.
With the fresh investment, Reliance has raised Rs 78,562 crore since last month, taking RIL closer to its target of clearing all its debt.
The company’s debt stood at 1.61 lakh crore as of March 2020 and it seems that the company may even achieve its target before the deadline set by Mukesh Ambani.
While it has raised over Rs 78,500 crore in investments, the company also announced the biggest rights issue in India in the last three decades.
A large part of the additional capital raised through the mega rights issue, worth Rs 53,125 crore, will also go towards clearing RIL’s debt pool. The rights issue opened for subscription on May 20 and will close on June 3.
Reliance is also looking at another plan which involves 20 per cent stake sale in its oil-to-chemical business to Saudi Aramco. The deal is currently undergoing due diligence and is on track despite disruptions in global oil markets due to coronavirus.
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