Mark Zuckerberg’s Facebook Inc. has investedfor $5.7 billion (Rs 43,574 crore), in the telecom unit of Mukesh Ambani’s Reliance Industries Ltd (RIL).This is the biggest investment in a technology company in India.

The Mark Zuckerberg-founded company will pick up a 9.9% stake in Reliance JioPlatforms Ltd, becoming the largest minority shareholder.

Of the total investment, Rs 15,000 crore will be retained by Jio Platforms, while the remaining will be used by the company to redeem the optionally convertible preference shares held by RIL in the digital business.
This is also the biggest minority shareholding deal ever for Facebook and also the largest foreign direct investment (FDI) for minority stake, in India.

With the help of this investment, Jio Platform ltd isnow listed among the top 5 listed companies in India by market capitalization. Jio has attained this status within three and a half years of the launch of commercial services.

Facebook and Jio are leaders in their respective industries in India.

Facebook’s app and WhatsApp are among the most used social platforms in India as WhatsApp has over 400 million users in India and Jio is India’s leading wireless phone network, which has close to 400 million subscribers.

Jio Platforms, Reliance Retail and WhatsApp have also signed a commercial pact to cross-leverage ecommerce platform Jio Mart and WhatsApp, to grow both businesses.

The JioMart of Jio Platforms ltd will be integrated within WhatsApp, which will allow consumers across the country to access the grocery and departmental stores from within app. This would enable new opportunities for businesses of all sizes.

Facebook’s invest is an all-cash deal which will help the Reliance Industries (RIL), the oil-to retail conglomerate, to reduce debt and strengthen the Facebook Inc’s presence in its largest market, especially for its WhatsApp unit.

Reliance Industries (RIL) on April 30 reported a consolidated profit of Rs 6,348 crore for the March quarter. RIL’s consolidated profit dropped 45.5 percent due to the slump in oil prices triggered by coronavirus but it’s subsidiary, Jio Platforms limited has shown an impressive growthat 72.7 percentsequential growth profit at Rs 2,331 crore.

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