After Facebook, Silver Lake to invest in Reliance Jio

Recently, the news about Facebook’s investment in Reliance Jio was well-received by the general public. Following it, Reliance Industries has now announced about rights issue as well of Silver Lake’s investment in Jio.

Reliance Industries announced that for the first time, the company will be undertaking rights issue as its board of directors and management has approved the issuance of equity shares of Rs 10 each of the company on rights basis to eligible equity shareholders of the company as on the record date, which will be notified later, of an issue size of Rs 53,125 crore. The rights issue price is set at Rs 1,257 per fully paid-up equity share, which also includes a premium of Rs 1,247 per equity share. As for the terms of payment of issue price – 25 per cent on application and balance in one or more calls as may be decided ahead. The right entitlement will be of one equity share for every 15 equity shares held by eligible shareholders as on the record date.

Additionally, as Jio Platforms receive interest from global investors, RIL announced that Silver Lake will be investing Rs 5,655.75 crore into Jio Platforms. Silver Lake is considered as a global leader in large-scale technology investing aiming to build and grow great companies by partnering with world-class management teams.

RIL announced its Q4FY20 results, where the company’s revenue for the quarter declined by 2.5 per cent to Rs 1,51,209 crore on a consolidated basis. EBITDA expanded by 7.6 per cent to Rs 25,886 crore in Q4FY20 from Rs 24,047 crore in Q4FY19. For Q4FY20, the company gained a net profit of Rs 6,546 crore, which is 37.2 per cent lower than that of Rs 10,427 crore gained in Q4FY19.

On Monday, the stock of the company closed at Rs 1,435.40, down by 2.16 per cent or Rs 31.65 per share. The 52-week high is Rs 1,617.80 and 52-week low is Rs 875.70 on BSE.