TPG, LVMH-Backed Fund Invest $850 Million in Jio Platforms
A pedestrian using a smartphone walks past advertising and signage for Reliance Jio in New Delhi, India. (Photographer: Sanjit Das/Bloomberg)

TPG, LVMH-Backed Fund Invest $850 Million in Jio Platforms

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(Bloomberg) -- A Texas-based private equity firm and a fund backed by luxury retailer LVMH added $850 million to the surge of investment in Jio Platforms Ltd., the telecommunications and digital services business of Reliance Industries Ltd., India’s largest company.

TPG Capital agreed to pay 45.5 billion rupees ($600 million) for a 0.93% stake in Jio Platforms, while L Catterton, the $20 billion consumer-focused private equity firm, took a 0.39% stake for 18.9 billion rupees, Reliance said in separate statements dated June 13.

The deals add to the list of well-known investment firms joining billionaire Mukesh Ambani’s bid to pay down debt at his Reliance flagship, raising the total invested to about $13.7 billion since April. Ambani has also drawn investors with a plan to shift the conglomerate toward growth in e-commerce, online entertainment and digital payments, away from a dependence on revenue from oil refining and petrochemicals.

“I particularly look forward to gaining from L Catterton’s invaluable experience in creating consumer-centric businesses,” Ambani said in the statement dated June 13.

Ambani’s digital unit, whose equity value is now about $65 billion, has sold more than 22% in stakes to buyers including Facebook Inc., KKR & Co., Silver Lake Partners and General Atlantic. Jio is expected to use its roughly 400 million wireless phone subscribers as the cornerstone of an e-commerce and digital services business in the world’s second-biggest country.

BuyerAmountStakeDate
Facebook$5.7 billion9.99%April 22
Silver Lake*$1.35 billion2.1May 4, June 5
Vista$1.5 billion2.3May 8
General Atlantic$873 million1.3May 17
KKR$1.5 billion2.3May 22
Mubadala$1.2 billion1.85June 5
Adia$752 million1.16June 7
L Catterton$250 million0.39June 13
TPG$600 million0.93June 13

The slew of investments have sent Reliance Industries shares soaring more than 80% since late March, and the stock is trading near a record high.

Ambani, Asia’s richest man, has also been plowing more of his own fortune into the company. Reliance Industries concluded its $7 billion rights offering earlier this month.

©2020 Bloomberg L.P.

Also read: Jio Platforms Sells Rs 5,684-Crore Stake To Abu Dhabi Investment Authority

Also read: Why Jio-Facebook May Work Better Than A Google Or Amazon Combination

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