Jio platforms ltd., Telecommunications company

New Delhi, April 22 With Facebook set to invest Rs 43,574 crore in Jio Platforms Ltd, the Reliance Industries subsidiary has inched closer to become a zero debt company.Speaking to the media on a conference call, Anshuman Thakur, Head of Strategy, Reliance Jio said that out of the total investment coming in, Rs 15,000 crore would be retained by Jio Platforms and the rest would be used to redeem the optionally convertible preference shares held by RIL in the digital business."Jio Platforms Ltd has been valued at Rs 4.62 lakh crore, the debt in the company is around Rs 40,000 crore, with this investment, Rs 15,000 crore would be retained in the company and the balance would be used to redeem OCPS investment of RIL in the company and the net debt of Jio Platforms willcorrespondingly come down because of the Rs 15,000 crore cash which is retained in the company," he said.Analysts are also of the view that it is a major development both for Jio and its parent Reliance Industries for debt reduction.Pranjal Kamra, CEO, Finology said: "The huge amount of debt that was burdening Reliance's balance sheet would be drastically reduced with this deal. So, more efficient operations are definitely on cards."According to Rajeev Shah, MD and CEO of RBSA Advisors, the deal is lucrative for RIL, as it will help in deleveraging the group, which is Reliance's stated objective, and this will be a major cash boost for the Reliance Industries, since the current uncertainties in the crude oil market, may cast a shadow on the potential investment deal between Reliance and Saudi Aramco.Noting that the Facebook's investment is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India, brokerage firm Anand Rathi Financial Services said that the investment increases the valuation of Jio Platforms in a major way, validating Reliance Industries' capability in incubating and building disruptive next-generation businesses, while delivering market defining shareholder value.The brokerage firm said that it continues to remain positive on the stock and maintains 'BUY' rating on RIL with a revised target price upwards to Rs 1,466 per share.On Wednesday, the share price surged by 10.30 per cent to close at Rs 1,363.35 per share.( With inputs from IANS )

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Jio platforms ltd., Latest News

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