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During the last two months of economic slowdown, almost every business suffered in some way or the other. But what really matters is how businesses dealt with this? Why only business, did you not become the better version of yourself? Did you work upon things that you are not good at? Most of us would have.
Let us discuss about the economy. If we talk sector-wise, the automobile sector was the major hit by this lock-down. But what is the key point to note despite this situation, is Reliance Industries Limited (RIL), utilized this opportunity to attract huge investments into its Telecom Sector - “Jio Communications”.
As of now, Reliance Jio has already received a total of 11 investments in the pocket. All this is in the span of almost two months or less. Now, this is something that can be termed as “Productive” for an artificial person.
Among 11 investments, Facebook which is entitled to 9.99% of Jio share holding is the largest minority shareholders. In order to know about the first ever deal of Jio with a foreign company, click here.
This is not it. This news is more popular than the previous ones.
Intel Capital is now onboard with the elite list investors on the Jio platform.
Intel Capital becomes the 12th firm to invest in the Telecom Sector of Reliance
Industries Limited. This will be the 12th investment in less than 3 months.
Key Highlights of
the Deal
1. The transaction with Intel Capital and Jio Telecommunications stands its Enterprise Value of Rs 5.16 Lakh crores (INR 5.16 Trillion) and Equity value of 4.91 Lakh crores (INR 4.91 Trillion).
2. US Semiconductor giant Intel will invest INR 1894.5 crores for an equity stake of 0.39 percent.
3. The post-deal scenario - Jio Platforms has raised INR 1,17,588.45 crore from major global investors since 22nd April.
4. Intel will now join the team of Facebook, Vista, Silver Lake, General Atlantic, KKR, L Catterton, and lands in 12th position.
5. After this deal, Jio now diluted and sold its 25.09 percent shareholding to foreign investors, retaining the majority of 74.91%.
6. Intel Capital
deal is similar to the deal of L Catterton which also has a stake of 0.39
percent for Rs 1894.5 Crores.
Strategic Move -
What to Expect From This Deal?
In my article on Reliance and Facebook Deal, I discussed about how the deal will provide new heights for Jio. Similarly, joining hands with Intel, it will be proved to be a strategic tactic. As per the reports, Jio is planning to launch it’s “Jio Laptop” soon. Now you get it right!
This deal highlights Jio’s Potential to dominate the digital market of
India. It will focus disruptive and most demanded technology like cloud
computing, Artificial Intelligence. Artificial Intelligence will be proved to
be a Pillar in the domination of Indian Digital market.
Artificial intelligence will be the whole new universe in the era of digitization. It works best where the database is huge and multiple experiments can be done upon. Jio has a large consumer base which not only comprises of Telecom. You have apps like Jio Saavn, Jio money, Jio mart, Jio TV, Jio MEET (Competitor of Zoom).
All the consumers data from the applications offered by Jio, are well
suited for the requirements of AI. This will be a differentiating factor for
Jio tele-communications. Till now Jio leads the Indian market with 38.8 crores
subscribers.
Investment
Opportunity
As Stock market enthusiasts, I always try to link up the corporate actions and how it will affect the stock price of a particular company. Since the news of this deal, the share price of RIL breaks its 52-week high on 6th July. Now the question is still there is any scope for investment?
As a beginner, I would suggest you, do proper research and then take the decision upon any of investment. If you are new to investment, and really want to create an investment portfolio that is not only a profitable one but also has a moderate risk, you can refer to my article on portfolio building.
As per the news, Jio will be soon announcing the Initial Public Offer
(IPO), in 12 months. This means now the Telecom Sector of Reliance will invite
the general public to take a stake in the company. Isn’t it interesting! This
will surely serve a huge opportunity for investors to invest and earn decent
returns.
Written By – Utkarsh Samaiya
Edited by – Adrija Saha
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