Jio Platforms’ equity dilution likely to reach 25% as Saudi’s sovereign wealth fund eyes stake

Agencies
June 16, 2020

Mumbai, Jun 16: Saudi Arabia’s sovereign wealth fund, PIF, is all set to pick up a stake in Jio Platforms, which would complete 25% of Jio’s equity dilution to the investors, said a report by the Gulf News.

Jio Platforms is part of the Reliance Industries empire owned by Mukesh Ambani. The Public Investment Fund (PIF) will acquire 2.33% for an estimated $1.5 billion, the report said.

So far, Jio Platforms has raised investment from 10 different global investors in seven weeks, the latest being TPG Capital buying 0.93% equity for Rs 4,547 crore and private equity firm L Catterton picking up a 0.39% stake for Rs 1894.50 crore.

Jio Platforms has raised a total of Rs 1.04 lakh crore so far from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton since April 22.

With PIF coming on board, Jio Platforms would have diluted 25% of its equity. That's the maximum they intend to dilute to financial investors, which includes Mark Zukerberg's Facebook.

Any new investors coming on board in future will have to be "strategic investors, a tech giant, for instance," said a source who was part of the deal-making process, the report said.

In recent days, Jio Platforms, which will merge telecom, content streaming, gaming and ecommerce features into its app, has seen Abu Dhabi's Mubadala and ADIA pick up significant stakes amounting to $1.2 billion and $750 million, respectively.

Reliance Industries' owner, Ambani, Asia's richest man, has been on an investor acquisition spree, with the likes of Facebook and private equity majors such as KKR and Silver Lake Capital investing in Jio Platforms.

The contours of the deal with Saudi Arabia's PIF was finalised during Ramadan. "It was always Mukesh Ambani's wish to have a special relationship with Saudi Arabia and the UAE," said Anshuman Mishra, a London-based confidante and family friend of the Ambani family of longstanding, Gulf News quoted as saying.

He has also worked extensively with Gulf sovereign wealth funds over the years.

"Saudi Arabia's coming in to close the financial investor round in Jio is indicative of the special nature of the relationship. This is also indicative of the multi-billion-dollar partnership announced last year with Saudi Aramco.

"This is a major success for the present Indian government's foreign policy initiative in the gulf and symbolic of India's significance in the GCC," it said.

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News Network
July 16,2020

New Delhi, Jul 16: The Rajasthan High Court will hear Thursday afternoon a petition filed on behalf of the Sachin Pilot camp, challenging a move to disqualify dissident MLAs from the state assembly.

The plea against the disqualification notices sent from the Speaker’s office to Pilot and 18 other Congress MLAs will be heard by Justice Satish Chandra Sharma.

The 19 MLAs were sent notices Tuesday by the Speaker after the Congress complained that the MLAs had defied a party whip to attend two Congress Legislature Party meetings. 

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News Network
June 24,2020

New Delhi, Jun 24: Union Civil Aviation Minister Hardeep Singh Puri on Tuesday said that nearly 1,25,000 Indians have returned from different countries under the Vande Bharat Mission.

He informed that 6,037 people returned to India from overseas on June 23.

"Vande Bharat continues to be a mission of hope and happiness for stranded and distressed Indians around the world. So far, nearly 125K Indians have come back on these evacuation flights and nearly 43K have flown out of India. Today (on Tuesday) 6,037 people returned from different countries," Puri said in a tweet.

As many as 2,50,087 Indian nationals stranded abroad have been repatriated since the beginning of Vande Bharat Mission last month, the Ministry of External Affairs (MEA) said last week.

The Vande Bharat Mission, which started from May 7 to evacuate Indians stranded abroad due to coronavirus pandemic, is in its third phase.
The recent phase commenced on June 11.

Under the third phase, India would have 550 flights including 191 feeder flights.

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Agencies
April 24,2020

New Delhi, Apr 24: The Jamia Coordination Committee (JCC) on Friday accused Delhi Police of framing two of its members - Meeran Haider, Safoora Zargar, along with student leader Umar Khalid, as part of "an imaginary conspiracy behind the recent North East Delhi riots".

While Haider was arrested on April 2, Zargar was taken in custody on April 10 for their alleged involvement in fuelling the riots.

"These arrests by the police have little ground, and the charges seem to have no rhyme or reason. Safoora was even granted bail in the case she was initially arrested in, following which she was arrested and had heavier charges placed against her," the JCC said in a statement.

Meeran, Safoora and Umar have been charged under the Unlawful Activities (Prevention) Act (UAPA), which allows curbing of fundamental rights in order to protect the sovereignty of India. The JCC, however, claimed that in this case, the Act is being used to suppress their voices.

"This Act has been used against many activists working to protect constitutional morality, a list which now includes members of the JCC, a wholly constitutionalist collective of students and alumni," the JCC said, defending its members.

JCC maintained it had no role in Delhi riots, but apprehended that more people will be arrested by the Delhi Police as part of its conspiracy against students and protestors.

"It is almost certain that more protesters will be framed and arrested in the conspiracy invented by the Delhi Police. JCC reiterates that it played no part in the riots, and this fact will be proved before any court of law," it said in a statement.

It also demanded political parties, and university administration take a stand for the two accused JCC members and student leader Umar Khalid.

The JCC came into existence after a violent face-off between Delhi Police and unruly anti-CAA protestors left Jamia Millia Islamia vandalised. It was after this, that a group of students from the Jamia Millia formed it to decide upon the future course of actions in protest against the CAA and the police action.

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