Reliance Industries (RIL) touched record high of Rs 1,911.90 in early trade on July 13 after the company said Qualcomm Inc will invest Rs 730 crore in Jio Platforms for a 0.15 percent stake.
RIL is the first Indian company to cross the Rs 12 lakh crore market valuation mark. At the time of writing this copy, the market capitalisation of the company stood at Rs 12,10,889.65 crore.
Qualcomm Ventures, the investment arm of Qualcomm Incorporated has committed to invest up to Rs 730 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore, RIL said in a press release.
Qualcomm, one of the world’s top wireless technology companies, is the third technology investor in Jio after Facebook Inc and American semiconductor giant Intel. The RIL unit runs the telecom enterprise Jio Infocomm, India’s biggest, as well as movie, news and music apps.
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The deal with Qualcomm—the 13th such investment in 12 weeks—takes the total stake that Reliance sold in Jio Platforms to 25.24 percent.
Facebook led the investments in Jio by buying a 9.99 percent stake for Rs 43,574 crore on April 22. The oil-to-telecom conglomerate has since sold stakes in Jio to global investors such as General Atlantic, KKR, Saudi sovereign wealth fund, Abu Dhabi state fund, Saudi Arabia’s PIF and Intel.
The transaction is subject to regulatory and other customary approvals.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels. Trilegal acted as legal counsel for Qualcomm Ventures.
The company received the subscription amounts from the following investors and allotted equity shares to them:
Credit Suisse has maintained a neutral rating on the stock and raised the target to Rs 1,690 from Rs 1,375 per share.
According to Credit Suisse, increased Jio’s EV to $88.5 billion by including Jio’s non-wireless verticals and significant progress is made in many of Jio’s non-wireless verticals. It assigned an EV of $17.5 billion for non-wireless verticals, reported CNBC-TV18.
At 09:16 hrs, Reliance Industries was quoting at Rs 1,907.50, up Rs 29.00, or 1.54 percent on the BSE.Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.