Reliance Industries stock price up 7% on Facebook's mega-investment
Reliance Industries (RIL) share price has zoomed in the early trade today on the back of Facebook's mega-investment worth Rs 43,574 in Jio Platforms for a 9.99 per cent stake. Jio Platforms is a wholly-owned subsidiary of Reliance Industries.
Accordingly, the company's stocks at the BSE gained Rs 83.85 or 6.78 per cent to Rs 1.319.90 per share from its previous close.
In the intra-day trade period till now, the stock touched a high of Rs 1,339.20 and a low of Rs 1,300 per share.
On early Wednesday morning, the company announced that social media giant Facebook has entered into binding agreements to invest Rs 43,574 crore into Jio Platforms for a 9.99 per cent stake.
"This investment by Facebook values Jio Platforms at a 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US Dollar)," RIL said in a statement.
"Facebook's investment will translate into a 9.99 per cent equity stake in Jio Platforms on a fully diluted basis," it said.
Furthermore, the statement said the partnership assumes special significance for India in the wake of the severe disruptions caused by the coronavirus pandemic in the Indian and the global economy.
"In the post-COVID era, comprehensive digitalisation will be an absolute necessity for revitalisation of the Indian economy," the statement said.
"It is our common belief and commitment that no Indian should be deprived of the tremendous new opportunities, including for new employment and new businesses, in the process of India's 360-degree digital transformation."
Concurrently to the investment, Jio Platforms, Reliance Retail and WhatsApp have also entered into a commercial partnership agreement to further accelerate Reliance Retail's New Commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp.
(With Inputs from Agencies)
