RIL in talks to sell more stake in Jio Platforms
MUMBAI:The talks with New Yorkbased private equity firm General Atlantic to sell a 2% stake in Jio Platforms for ₹10,000 crore are among a series of stake sale initiatives by Reliance Industries Ltd (RIL) to build confidence among potential investors as it heads for a mega rights issue, said two people on condition of anonymity.
On April 30, RIL had announced plans to raise ₹53,125 crore through a 1:15 rights issue (one new share for every 15 shares held) at an offer price of ₹1,257 a share. The record date for the issue is May 14.
“This is a very large rights issue, considering the current market sentiment. The overall market sentiment is subdued. There is a lot of economic uncerbai, tainty. That is one of the main reasons why the proposed rights issue is being kept as a partly paid-up issue, which means any subscriber can buy the rights issue shares by only making a part payment now and the rest within a period of six months or a year,” said one of the two people cited above.
“Within that time, RIL promoters too can comfortably bring in enough money to subscribe to the rights issue. The global investments in Jio Platforms will build confidence among investors, which will help RIL successfully complete the rights issue.”
Shareholders willing to subscribe to the rights issue will have to pay 25% on application and the rest in one or more tranches. With 50% shareholding, RIL’s promoter group led by Mukesh Ambani will need ₹26,600 crore to subscribe to its portion of the rights issue.
“At least 25% or ₹6,650 crore will have to be brought in as upfront amount to subscribe to the rights issue,” said the person cited earlier.
THE FIRM IS LOOKING TO SELL A 2% STAKE IN JIO FOR ₹10,000 CRORE TO GENERAL ATLANTIC