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RIL Shares Jump 8 Percent After Facebook Buys Stake In Jio

Jio is a wholly-owned subsidiary of Mukesh Ambani’s RIL, out of which Facebook will buy almost 10% stake. With this new deal, Facebook becomes Jio’s largest minority shareholder. 

Mumbai| The shares of Reliance Industries Limited (RIL) jumped 8% on Wednesday after Facebook decided to buy almost a 10% stake in the company’s subsidiary Reliance Jio.

The RIL shares started rising since the announcement and touched at 8.3 percent. At 11:45 am, RIL shares were trading at Rs 1332.95, almost 7.71 percent higher.

Jio is a wholly-owned subsidiary of Mukesh Ambani’s RIL, out of which Facebook will buy almost 10% stake. With this new deal, Facebook becomes Jio’s largest minority shareholder.

A video statement released by Ambani said that this new development will help the “Digital India” initiative.

“The synergy between Jio and Facebook will help realize Digital India Mission with its two ambitious goals — Ease of Living and Ease of Doing Business for every single category of Indian people without exception,” Ambani said in the statement.

“In the post-Corona era, I am confident of India’s economic recovery and resurgence in the shortest period of time,” he further added.

“The partnership will surely make an important contribution to this transformation.”

A statement by Reliance said the fresh investment of Rs 43,574 crore by Facebook values Jio Platforms at “Rs 4.62 lakh crore pre-money enterprise value assuming a conversion rate of Rs 70 to a US dollar”.

Facebook CEO Mark Zuckerberg, sharing the details about the deal, said, “India has more than 60 million small businesses and millions of people rely on them for jobs. With communities around the world in lockdown, many of these entrepreneurs need digital tools they can rely on to find and communicate with customers and grow their businesses. This is something we can help with — and that’s why we’re partnering with Jio.

 

 

 

 

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