Mukesh Ambani gained $5.3 billion as Reliance Industries' stock increased after it became net debt-free. Ambani is now the ninth richest person in the world.
Reliance Industries Chairman and MD Mukesh Ambani, who's Asia's richest person, has entered the world's top 10 billionaires' club for the first time.
Ambani's wealth rose $5.3 billion to reach $64.6 billion (or Rs 4.9 lakh crore) on Sunday, according to Forbes Real-Time Billionaire list. Ambani ranks ninth on the list, marginally ahead of Google Co-founder Larry Page, whose fortune is worth $64.5 billion.
Following RIL's Rs 1.69 lakh crore fundraise (through funding in Jio Platforms and a rights issue) in the last two months, its stock has increased 6.5 percent. The petroleum-to-telecom conglomerate is presently valued at $88 billion, and is net debt-free.
Ambani's wealth rose $5.3 billion to reach $64.6 billion (or Rs 4.9 lakh crore) on Sunday, according to Forbes Real-Time Billionaire list. Ambani ranks ninth on the list, marginally ahead of Google Co-founder Larry Page, whose fortune is worth $64.5 billion.
Following RIL's Rs 1.69 lakh crore fundraise (through funding in Jio Platforms and a rights issue) in the last two months, its stock has increased 6.5 percent. The petroleum-to-telecom conglomerate is presently valued at $88 billion, and is net debt-free.
Reliance Industries on Sunday said it sold 1.16 percent stake in its digital unit to Abu Dhabi Investment Authority (ADIA) for Rs 5,683.50 crore, taking the cumulative fund raising to Rs 97,885.65 crore that will help pare debt at the oil-to-telecom conglomerate.
"This investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. ADIA's investment will translate into a 1.16 percent equity stake in Jio Platforms on a fully diluted basis," the company said in a statement.
With this investment, Jio Platforms has raised Rs 97,885.65 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, and ADIA in less than seven weeks.
The AIDA deal comes within days of Abu Dhabi sovereign wealth fund Mubadala Investment Co picking up 1.85 percent in Jio Platforms for Rs 9,093.60 crore on June 5. On that day, private equity fund Silver Lake invested another Rs 4,546.80 crore for additional 0.93 percent stake in Jio Platforms.
With this investment, Jio Platforms has raised Rs 97,885.65 crore from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, and ADIA in less than seven weeks.
The AIDA deal comes within days of Abu Dhabi sovereign wealth fund Mubadala Investment Co picking up 1.85 percent in Jio Platforms for Rs 9,093.60 crore on June 5. On that day, private equity fund Silver Lake invested another Rs 4,546.80 crore for additional 0.93 percent stake in Jio Platforms.
With these investment, Reliance has sold all of the targeted 21 percent equity in Jio Platforms ahead of a potential IPO.
Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd, is a next-generation technology company. Reliance Jio Infocomm Ltd, with 388 million mobile subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.
The deals follows Facebook picking up a 9.99 percent stake in the firm that houses India's youngest but largest telecom firm on April 22 for Rs 43,574 crore. Within days of that deal, Silver Lake — the world's largest tech investor — bought a 1.15 percent stake in Jio Platforms for Rs 5,665.75 crore on May 4.
On May 8, US-based Vista Equity Partners bought 2.32 percent stake in Jio Platforms for Rs 11,367 crore. On May 17, global equity firm General Atlantic picked up 1.34 percent stake in Jio Platforms for Rs 6,598.38 crore. This was followed by US private equity giant KKR buying 2.32 percent for Rs 11,367 crore.
On June 5, Silver Lake made an additional investment to take its stake to 2.08 percent.
On May 8, US-based Vista Equity Partners bought 2.32 percent stake in Jio Platforms for Rs 11,367 crore. On May 17, global equity firm General Atlantic picked up 1.34 percent stake in Jio Platforms for Rs 6,598.38 crore. This was followed by US private equity giant KKR buying 2.32 percent for Rs 11,367 crore.
On June 5, Silver Lake made an additional investment to take its stake to 2.08 percent.
Established in 1976, ADIA is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation. It manages a global investment portfolio that is diversified across more than two dozen asset classes and sub-categories.
The transaction is subject to regulatory and other customary approvals. "Jio Platforms is at the forefront of India's digital revolution, poised to benefit from major socio-economic developments and the transformative effects of technology on the way people live and work.
The transaction is subject to regulatory and other customary approvals. "Jio Platforms is at the forefront of India's digital revolution, poised to benefit from major socio-economic developments and the transformative effects of technology on the way people live and work.
"The rapid growth of the business, which has established itself as a market leader in just four years, has been built on a strong track record of strategic execution. Our investment in Jio is a further demonstration of ADIA's ability to draw on deep regional and sector expertise to invest globally in market leading companies and alongside proven partners," Hamad Shahwan Aldhaheri, Executive Director of the Private Equities Department at ADIA, said.
Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners, and Davis Polk & Wardwell acted as legal counsel.
Mukesh Ambani, 63, Chairman and Managing director of Reliance, had in August last year set a target of March 2021, to make his conglomerate net debt-free. But thanks to the Facebook deal, a Rs 53,125 crore rights issue, private equity investments, and more stake sale to companies such as Saudi Aramco, the target is likely to be achieved by December.
At the end of March quarter, Reliance had an outstanding debt of Rs 3,36,294 crore and cash-in-hand of Rs 1,75,259 crore. After adjusting cash, the net debt came to Rs 1,61,035 crore.
Of the outstanding debt, Rs 2,62,000 crore is on Reliance books and Rs 23,000 crore is with Jio.
Ambani is now a part of a coveted club that includes the world's ultra-rich.
Amazon Founder Jeff Bezos leads the list of billionaires with a net worth of $160.1 billion. He's followed by Microsoft Founder Bill Gates ($108.6 billion), LVMH Chairman and CEO Bernard Arnault ($102.8 billion), Facebook CEO Mark Zuckerberg ($87.9 billion), Berkshire Hathaway Chairman Warren Buffett ($71.4 billion), and others.
The second richest Indian on the Forbes list is Radhakishan Damani, the founder of hypermarket chain DMart. He's ranked at 82nd, with a net worth of $16.2 billion. Incidentally, Ambani and Damani are the only two Indians in the top 100.
Other notable Indians
Other notable Indians
IT pioneer and HCL Founder Shiv Nadar (rank #105), Adani Group Chairman Gautam Adani (rank #121), and Bharti Airtel Founder and Chairman Sunil Mittal (rank #160) follow with fortunes of $14.5 billion, $13.5 billion, and $10.8 billion, respectively.
Among the recent Indian entrants in the billionaires' club is BYJU's Founder and CEO Byju Raveendran.
 |
| BYJU's Founder and CEO Byju Raveendran. |
The 39-year-old debuted in the Forbes Billionaires List in 2020 with an estimated net worth of $1.8 billion. His $10 billion startup is witnessing one of the biggest growth curves in recent times riding on the COVID-19-led boom in edtech.
Apoorva Mehta, the Indian origin founder and CEO of Instacart (San Francisco-based online grocery service) is the newest Forbes billionaire. His net worth is estimated to be $1.2 billion, while his company is valued at $13.7 billion.
Interestingly, after the coronavirus-led bloodbath in global stock markets, a record 1,062 billionaires saw their wealth decline, while 267 of them dropped out of the coveted club.
The total combined net worth of billionaires in 2020 stood at $8 trillion, falling from $8.7 trillion in 2019, Forbes revealed.
The total combined net worth of billionaires in 2020 stood at $8 trillion, falling from $8.7 trillion in 2019, Forbes revealed.
"The richest people on Earth are not immune to the coronavirus. As the pandemic tightened its grip on Europe and America, global equity markets imploded, tanking many fortunes... Of the billionaires who remain, 51 percent are poorer than they were last year," it stated.
Blogger Comment