new Delhi. Ever since Reliance Jio, the telecom company of billionaire industrialist Mukesh Ambani, came into the market, it has always been in the headlines by doing something different and unique. Sometimes because of their free service and sometimes due to cheap data, sometimes in order to create the maximum consumer base in a short time. But nowadays Reliance Jio is in discussion to attract investors from all over the world. In the last 3 weeks, the company has raised capital of Rs 60,596.37 crore from world-leading investors. Reliance Jio has set a record in terms of achieving such a high market value in a short span of time after starting its commercial operations. It is noteworthy that Reliance Jio started its commercial operations in September 2016 and since then the market value of the company has crossed 5 lakh crores in a period of 3.5 years.
The fresh capital investment has led to the valuation of Reliance Jio platform, the parent company of Reliance Jio, which is a wholly owned subsidiary of Reliance Industries Ltd., to Rs 4.62 lakh crore and the total market capitalization (enterprise value) to Rs 5.16 lakh crore. With this valuation, Reliance Jio platform has entered the top 5 companies with the highest market cap listed in India. However, Reliance Jio platform is not a separately listed company in the stock market. In terms of market cap, it has outperformed years-old companies HDFC and Infosys.
Vista deal values Jio at Rs 5.16 lakh crore, puts it among top 5 listed firms in India
As of May 7, 2020, Reliance Industries ranked first among the top 4 companies with the highest market cap in India, with a total market cap of Rs 9.55 lakh crore. In second place is TCS, with a market cap of Rs 7.09 lakh crore. HDFC Bank is at the third position with Rs 5.07 lakh crore. In fourth place is Reliance Jio platform, which has a market value of Rs 5.16 lakh crore. It is followed by HUL, which has a market capitalization of Rs 4.68 lakh crore.
Reliance Jio has more than doubled its market capitalization compared to Bharti Airtel. Bharti Airtel has a total market capitalization of Rs 2.87 lakh crore as of May 7, 2020. In April, Facebook announced the acquisition of 9.99 percent stake in Jio for Rs 43,574 crore. This is Facebook's largest investment ever since it bought WhatsApp in 2014 for $ 22 billion. After this, on May 4, US private equity company Silver Lake Partners bought a 1 percent stake in Jio for Rs 5655.7 crore.
On Friday, May 8, another US-based investor investor Vista Equity Partners announced to buy 2.32 percent stake in Reliance Jio platform for Rs 11,367 crore. With this investment, Vista became the third largest investor in Reliance Jio after Reliance Industries and Facebook.
This post was published on May 8, 2020 9:56 am
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