Facebook deal could send the RIL stock price past Rs 1,300 by April-end: SP Tuslian

Facebook has always been an aggressive acquirer and we have seen that happening with WhatsApp in 2014 as well as Instagram in 2012 and a similar trend was seen in Jio acquisition, SP Tulsian of sptulsian.com said in an interview with CNBC-TV18.

This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US Dollar). Facebook’s investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis.

“I was factoring the deal to get finalized in this month and put out a target of Rs 1315 by month-end and the mark capitalisation could be somewhere around Rs 8.5 lakh cr,” he said.

“Facebook has always been aggressive in expanding social platform building, and for the last couple of years they have been looking to build their own network infrastructure which they have not been able to,” added Tulsian.

The trend also suggests that big US investors are seen queuing up to make big investments into India in the telecom sector. Facebook has always been an aggressive buyer – in the market, people say that Facebook pays 120% of the fair value while Amazon pays 50-60% of fair value.

“With an investment of $5.7 bn investment for a near 10 percent stake in Jio has made them (Facebook) the single largest shareholder. The time is right, and Facebook was planning to build their network infrastructure the way they are expanding on social platforms across the globe,” said Tulsian.

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