Google To Invest Rs 33,737 Crore For A 7.7% Stake In Jio Platforms 
Sundar Pichai, chief executive officer of Google Inc., speaks during a news conference in New Delhi, India, on Wednesday, Jan. 4, 2017. (Photographer: Anindito Mukherjee/Bloomberg)

Google To Invest Rs 33,737 Crore For A 7.7% Stake In Jio Platforms 

Google has agreed to buy a Rs 33,737 crore stake in Jio Platforms Ltd., the digital arm of Reliance Industries Ltd., adding to a series of large investments into an digital venture.

The telecom company signed binding agreements with Google International LLC through which the global search giant will acquire a 7.73% equity stake in Jio Platforms Ltd. on a fully-diluted basis, Chairman Mukesh Ambani said while addressing shareholders during Reliance Industries’ 43rd annual general meeting. Google is the fourth strategic partner after Facebook, Intel Capital and Qualcomm.

Google, according to an exchange filing, pegs the equity valuation of Jio Platforms at Rs 4.36 lakh crore, similar to Facebook. The social media platform invested Rs 43,574 crore for a 9.99% stake via purchase of new shares.

Like Facebook, Google also bought the stake at Rs 18.10 apiece, a discount of 21% to pre-investment share value of Rs 23.10 apiece. While Facebook received a seat on the board of Jio Platforms, the statement doesn't mention the same about Google.

Google's deal adds to Jio’s growing list of high-profile investors, which also includes KKR, Silver Lake Partners, Abu Dhabi Investment Authority and Mubadala Investment Co. Barring Facebook, all the other investors pegged Jio Platforms equity valuation at Rs 4.91 lakh crore.

Reliance Industries has so far raised Rs 152,056 crore by selling nearly 33% stake in Jio Platforms.

Also read: RIL AGM Highlights: Mukesh Ambani Announces Google-Jio Deal, 5G Plans And JioGlass

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