Reliance lands one more investor

Reliance Industries Limited (RIL) and Jio Platforms Limited, India's leading digital services platform, have informed the bourses of an investment of Rs 1,894.50 crore by L Catterton, giving it a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis.

Including this investment, Jio Platforms has raised over 1 lakh crore or nearly 10 per cent of RIL's market capitalization this year from top global investors since April 22, 2020. The markets have applauded this fund-raising exercise and RIL's stock is now trading at all-time highs. On April 22, 2020, Reliance announced the first investor to get on-board. Since April 21, 2020, the stock is up 28.53 per cent as against the broader market index Nifty 50 which is up 11.03 per cent. A noteworthy point is that Reliance has the highest weight in Nifty 50; thereby, a part of Nifty returns can be attributed to Reliance.

Jio Platforms has more than 388 million subscribers. As per the presentation made by the company, India has the world's second-largest internet user base and is fast-growing, which has led to many foreign investors showing interest in the company.

Reliance Industries, which predominantly was into energy, textiles, petrochemicals, and natural resources, has diversified and introduced new revenue streams such as retail and telecommunication over the past couple of years. Thus, the consumer segment (retail and digital) is contributing about 35 per cent to the company EBITDA in FY20, compared to a mere 2 per cent in FY15.