Reliance Industries Slips After Abu Dhabi Investment Authority-Reliance Jio Deal

Reliance Industries shares surrendered their early gains of nearly 3 per cent and ended marginally in the red a day after India's largest conglomerate announced, on Sunday evening, that the Abu Dhabi's state-owned company ADIA (Abu Dhabi Investment Authority) will purchase a 1.16 per cent stake in its digital services arm Jio Platforms for Rs 5,683.50 crore through a wholly-owned subsidiary. The shares of Reliance Industries jumped 2.7 per cent to the day's high of Rs 1,624 at opening bell, but lost steam midway through the trading session to end at Rs 1,570, down Rs 10 or 0.6 per cent, on the BSE.

The ADIA deal values Jio Platforms at an equity value of Rs 4.91 lakh crore, and an enterprise value of Rs 5.16 lakh crore, Reliance Industries said in a regulatory filing.

The investment comes days after Reliance Industries announced that US-based Silver Lake and co-investors will increase their stake in Jio Platforms to 2.08 per cent from 0.93 per cent committed earlier, and Abu Dhabi's sovereign wealth fund Mubadala Investment Company will take a 1.85 per cent equity stake in Reliance Industries' digital services arm.

With the ADIA deal, Jio Platforms - which houses billionaire Mukesh Ambani-led Reliance Industries' telecoms arm Reliance Jio Infocomm - has raised a total Rs 97,885.65 crore from leading global investors, including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala and ADIA in less than seven weeks.

The BSE Sensex ended at 34,370, higher by 83 points or 0.2 per cent and the NSE Nifty settled at 10,167, up 25 points or 0.2 per cent.