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RIL gains as 3 sovereign wealth funds eye stake in Jio Platforms


NEW DELHI: Shares of Reliance Industries advanced over 1 per cent in Wednesday’s trade amid reports suggesting that three of the largest West Asian sovereign wealth funds are in advanced talks to invest in its telecom arm Jio Platforms.

Following the development, the scrip rose 1.49 per cent to hit a high of Rs 1,559. The stock also gained ahead of the closure of the company’s Rs 53,124 crore rights issue later in the day. The issue has received total bids for 54.9 crore shares so far, overshooting the 42.26 crore shares on offer by 29.8 per cent.

A Bloomberg report quoting sources said Abu Dhabi’s Mubadala Investment is nearing a deal to invest about $1 billion into Jio Platforms and an announcement could come as soon as this week. Reliance, backed by Asia’s richest man Mukesh Ambani, is also in discussions with Abu Dhabi Investment Authority (ADIA) and Saudi Arabia’s The Public Investment Fund, the sources told Bloomberg.

“What seems like unrelated diversification over the years has turned into a unique value proposition today – a physical-digital model for consumer businesses. We have presented a detailed analysis of our 6Cs (Communication, Computing, Commerce, Chemical, Content and Credit) framework to better understand RIL’s businesses. We see embedded option value in each of these platforms that would drive RIL’s market capitalization towards $205 billion by FY24,” Axis Securities said in a note.

The brokerage noted that Facebook’s strategic investment in Jio Platforms has introduced a new dimension to the market opportunity and believes marquee investors such as Silver Lake, Vista, General Atlantic and KKR see Jio Platforms as a unique consumer platform with distribution strength that can be leveraged across connectivity, commerce and credit using technology prowess to stay ahead of the curve.





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