The deal is breathtaking between Facebook and Reliance Industries, as the former will invest about Rs43,574cr in the latter's Jio Platforms.
With that, RIL states that this would be the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India.
The investment value takes Jio Platforms among the top 5 listed companies in India by market capitalization, which RIL reveals is within just three and a half years of the launch of commercial services, validating Reliance Industries’ capability in incubating and building disruptive next-generation businesses, while delivering market-defining shareholder value.
This will take RJio's market valuation to a whopping Rs4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs70 to a US Dollar).
India is among the largest users of the Facebook platform, while RJio has already bagged a leading position in the telecom sector.
RIL in the exchange filing said, "The partnership assumes special significance for India in the wake of the severe disruptions caused by the coronavirus pandemic in the Indian — and the global — economy. In the postCOVID era, comprehensive digitalisation will be an absolute necessity for revitalisation of the Indian economy."
"Indian should be deprived of the tremendous new opportunities, including opportunities for new employment and new businesses,
in the process of India’s 360-degree digital transformation," added RIL