Reliance Industries announced few months back about its plans to be debt-free by 2021. However, as per the current situation, the biggest listed company in Indian stocks markets, could reach that ambitious target before its planned date. Reliance group has been trusted by Indian investors for decades and it was popular among investors that no one has ever lost money in Dhirubhai Ambani’s companies (provided you invest medium or long term). But this time, foreign investors and funds with big pockets are pouring money in Mukesh Ambani’s Jio Platforms, at an amazing valuation of $65 billion.
Reliance launched its telecom services under Jio brand few quarters ago and the company has been growing fast since then. Few weeks back, Reliance announced a major investment from Facebook in Jio Platforms. After the news of Facebook surprised investors, positive news about more investments in Jio Platforms have been coming every week. We have seen Reliance raising nearly $5.7 billion from Facebook for 9.9 percent stake in the venture.
Private equity firm Silver Lake Partners, General Atlantic, KKR and Abu Dhabi-based Mubadala Investment Company have invested in Jio Platforms. Reliance was aiming to sell nearly 20 percent stake to big investors in its platform and the company has almost achieved that target.
At the same time, Reliance announced Rights Issue for raising nearly $7 billion from existing investors. The company managed to get 1.5 times more subscription for the largest Rights Issue in the Indian market. Reliance stock has touched 52-week high recently and investors are confident about the future prospectus of the company.