7 Key aspects of the Reliance Jio and Silver Lake Deal

Silver Lakes has invested in Reliance Jio. Here are some key aspects of the Jio and Silver Lake deal:

- Silver Lake will invest ₹ 5,655.75 crores into Jio Platforms.

- This investment values Jio Platforms at an equity value of ₹ 4.90 lakh crore and an enterprise value of ₹ 5.15 lakh crore.

- The Equity firm will have a 1.15 per cent stake in the digital unit of Jio.

- It also represents a 12.5% premium to the equity valuation of the Facebook investment announced on April 22, 2020.

- Morgan Stanley acted as financial advisor to Reliance Industries.

- AZB and Partners and Davis Polk, and Wardwell acted as legal counsels.

- Earlier, Facebook had bought a 9.99 per cent stake in Jio Platforms for USD 5.7 billion (Rs 43,574 crore) at an enterprise value of Rs 4.62 lakh crore.

About the prominent parties in the Reliance Jio and Silver Lake Deal

 Silver Lake:

Silver Lake is an American private equity firm. It buys or invests in technology, technology-enabled and related industries. Today, the firm is one of the largest technology investors in the world. It has a valuation of 4,250 crores USD. The company ahs a prestige, a reputation, of investing in the world's biggest tech giants including Twitter and Airbnb.  Further, Silver Lake's portfolio of investments collectively generates more than $230 billion of revenue annually and employs 370,000 people globally.

Reliance Jio:

RIL is India’s largest private sector company, with a consolidated turnover of INR 659,205 crore ($87.1 billion), cash profit of INR 71,446 crore ($9.4 billion), and net profit of INR 39,880 crore ($5.3 billion). RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

RIL is the top-most ranked company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ – currently ranking 106th in terms of both revenues and profits. The company stands 71st in the ‘Forbes Global 2000’ rankings for 2019 – top-most among Indian companies. It ranks 10th among LinkedIn’s ‘The Best Companies to Work For In India’ (2019).

Jio, though, is a subsidiary platform of RIL.  The company developed this with an insight of Mobile Video Network from the ground up. Later, it also aimed to support Voice over LTE technology. The firm says that they are future-ready. Also, they have said that they can easily upgrade support to even more data, as technologies advance on to 5G, 6G and beyond.

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