Reliance AGM 2020: The investment by Google values Jio Platforms at Rs 4.36 lakh crore.
- The investment by Google values Jio Platforms at an equity value of Rs 4.36 lakh crore.
- This investment takes the cumulative fund-raising by Reliance Industries to Rs 2,12,809 crore in less than three months, which includes investments in Jio Platforms and the rights issue worth Rs 53,124 crore.
- Jio Platforms is digital services arm of Reliance Industries, which houses Reliance Jio Infocomm.
- Mr. Sundar Pichai, CEO of Google and Alphabet, also said, "Reliance Industries, and Jio Platforms in particular, deserve a good deal of credit for India's digital transformation. The pace and scale of digital transformation in India is hugely inspiring for us and reinforces our view that building products for India first helps us build better products for users everywhere.
- Google's move comes at a time the government is preparing to auction 5G airwaves to telecoms service providers.
- Meanwhile, on Monday, Google had announced plans to spend $10 billion over the next five to seven years to help accelerate the adoption of digital technologies in India.
- Sundar Pichai, who was born in India, had then said that coronavirus outbreak brought home the importance of technology for conducting business and connecting with family and friends alike.
- Reliance Industries recently became the first Indian company to cross 12 million in terms of market capitalisation.
- By selling more than 25 per cent stake in Jio Platforms and unveiling the rights issue, Reliance Industries has become a net debt-free company well before the scheduled date of March 31, 2021.
- Although Jio Platforms also comprises Reliance Industries' music and movie apps, Jio Infocomm is its centrepiece. Reliance chairman Mukesh Ambani has always pitched Jio Infocomm as a tech company instead of a traditional telecom firm.
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