(Analysis) Reliance Jio deal with - Silver Lake (In English)

(Analysis) Reliance Jio deal with - Silver Lake (In English)

In less than two weeks after Facebook announced buying a 10% stake in Reliance jio, American private equity time Silver Lake partners has bought  1% stake of Jio platforms.

Analysis of Silver Lake deal with Jio

Analysis to understand the contours of the deal and also what are the big brokerage houses really saying about the deal

1. The big deal:- Silver Lake partners has part of 1.15 percent stake of Jio platforms for 5655 crore rupees or 750 million dollars. In a deal that really values the digital unit of Reliance Industries at 5.15 lakh crore rupees (in rupees) terms now this is a 12.5 percent premium to the value indicated by Facebook, which had bought a 9.99 percent stake of the digital unit of relience which valued Jio at four point six two lakh crore rupees. now this is the first sizable investment by Silverlake in India.

What is Silver Lake

 Silver Lake partners is the world's largest tech investor silver League has a track record of investing in some of the largest and most successful tech companies globally, such as Twitter, Airbnb, Alibaba, Dell,technologies, and financials alphabets weigh more and also verily among many others

How Silver Lake deal help Reliance 

- how will the deal really help Reliance shield. well the deal will help reduce our Isles debt burden which has actually bulged due to the breakneck expansion of Jio and also other businesses. now Mukesh Ambani who's the chairman and MD of Reliance Industries has said that Silver Lake is one of the most respected voices in technology and also finance. now they are also excited to leverage insights from their global technology relationships for the Indian digital society's transformation.

 Egon Durban whose Silver Lake Seco CEO and also managing partner has also said in a statement that Jio platforms have brought extraordinary engineering capabilities to bear on bringing the power of low-cost digital services to a mass consumer base and also small business population. now the market potential that they are addressing is also enormous fields. Silverlake now Jio platforms believe this partnership has a special significance and that comprehensive digitization will be a vital component of the revitalization of the Indian economy. Three big brokerage houses give a thumbs up to the deal ratings agency fitch has said that the deal with Facebook and also with Silverlake will help strengthen our Isles balance sheet which has also said that it expects ril to make further investments in consumer technology following the deal with silver link partners.

Financial services firm Edelweiss has said that bringing in a strategic partner in a difficult time like this is quite encouraging on the other hand SBI cap has said that getting a premium on the deal just a week in in just a week's time before the rights issue is called so quite positive for the company Reliance Industries and will also bode well for its shareholders in the times to come.