Reliance Industries shares gain nearly 2 pc after General Atlantic deal

Reliance Industries on Sunday announced the sale of 1.34 per cent stake in its digital unit to global equity firm General Atlantic for Rs 6,598.38 crore. (Photo: AFP)


Shares of Reliance Industries on Monday gained nearly 2 per cent after the company announced the sale of 1.34 per cent stake in its digital unit to global equity firm General Atlantic for Rs 6,598.38 crore.

The heavyweight stock rose by 1.58 per cent to Rs 1,482 on the BSE in opening session.

On the NSE, shares of the company went advanced 1.54 per cent to Rs 1,482.

However, as the session progressed, the company surrendered the early gains and was quoting 1.07 per cent down at Rs 1,443.25 on the BSE in line with weak market sentiment.

Reliance Industries on Sunday announced the sale of 1.34 per cent stake in its digital unit to global equity firm General Atlantic for Rs 6,598.38 crore, the fourth deal in less than four weeks that will inject a combined Rs 67,194.75 crore in the oil-to-telecom conglomerate to help it pare debt.

“This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. General Atlantic’s investment will translate into a 1.34 per cent equity stake in Jio Platforms on a fully diluted basis,” the company said in a statement.

The deal follows Facebook picking up a 9.99 per cent stake in the firm that houses India’s youngest but largest telecom firm on April 22 for Rs 43,574 crore.

Within days of that deal, Silver Lake – the world’s largest tech investor – bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore. On May 8, US-based Vista Equity Partners bought 2.32 per cent stake in Jio Platforms for Rs 11,367 crore.

Meanwhile, Reliance Industries’ Rs 53,125-crore rights issue will open for subscription of shareholders on May 20 and will close on June 3.

Shareholders will have to pay only 25 per cent for subscribing to the issue, and the balance will have to be paid in two installments in May and November next year, the company said.