Reliance Jio’s net debt has dipped to ₹21,900 crore from its pinnacle of ₹2.17 lakh crore, with global investors injecting funds via investments over the past six weeks, for equity stake in its parent Reliance Jio Platforms Ltd., which is a completely owned subsidiary of Reliance Industries Limited.
Investors such as Facebook, Silver Lake, Vista, General Atlantic, KKR and Mubadala have invested over ₹92,000 crore in Jio Platforms in the recent weeks, concluding an operation value of ₹5.2 lakh crore.
As in scenario of previous deals, Jio Platforms is anticipated to retain 10% of the funds and transfer the rest to its parent company, which could eventually use the funds for reduction of the debt on its own balance sheet.
According to the reports “Reliance Jio’s net debt would reduce to ₹21,900 crore from a peak of ₹2.17 lakh crore before the InvIT formation.
“… 10% of Mubadala’s investment of ₹9,094 crore would flow to Jio Platforms and the rest would go to the parent,” said Motilal Oswal Research in a note to clients.