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Jio –Silver Lake deal with a premium valuation. And, a cursory view of Hospitality sector.
Hope you’ve seen the movie Krrish (in which Hrithik Roshan is a superhero). As I read about the Jio – Silver Lake deal, I remembered the scene from the movie where Krrish plays Tug-of-War with a group of people. One person on one side and an entire group of people on the other and still that one person wins! After securing handsome investments from first Facebook and now Silver Lake, Jio might not be feeling less than a superhero.
Just for your information, Silver Lake is a private equity giant whose other investments have been in Alibaba, Airbnb, Ant Financial, Dell Technologies, Twitter and many others. Silver Lake has invested in global technological leaders and now it has bought 1.15% stake in Jio. The firm will invest Rs. 5655.75 crores into Jio Platforms (a wholly owned subsidiary of Reliance Industries Ltd.) for this stake. Also, with this deal Jio is valued at 4.90 lakh crores (equity value) and 5.15 lakh crores (enterprise value) which is more than 12% premium to the valuation assessed by Facebook.
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about 4 years ago