Saudi Arabia’s PIF set to pick up 2.33% stake in RIL’s Jio for $1.5 billion

[semaj02]

Saudi Arabia’s wealth fund Public Investment Fund (PIF) is all set to pick up a 2.33 per cent stake in Indian oil-to-telecom conglomerate Reliance Industries' Jio, for an estimated $1.5 billion.

If PIF comes on board, Jio Platforms will have diluted 25 per cent of its equity, the report said adding that is the maximum the company intends to dilute to financial investors.

 

[resjudicata]

@semaj02 I wonder what RIL investors who were invested only for exposure to Jio have to say about this. Would you rather have 100% ownership of Jio or 75% ownership - 1 lakh crore of debt? At Equity value of 4 lakh crores, 1 lakh crore of debt was manageable for Jio.

If it further gets listed on a foreign exchange, RIL's holding in Jio will drop even further and a domestic investor would have to jump extra hoops to get exposure to Jio

 

[wynne]

@resjudicata Do investors lose or gain when jio is eventually cut out ? How does that work ?

 

[rafaeliyah]

@resjudicata What are those extra hoops?

 

[resjudicata]

@rafaeliyah Get a new brokerage account that lets you buy securities listed on American exchanges. Expose yourself to fluctuation of USDINR rates, though it will most likely be a tailwind in this case. Submitting yourself to filing additional declaration every year while filing your IT returns

 

[psc303]

@resjudicata

Submitting yourself to filing additional declaration every year while filing your IT returns

Which has to be compulsorily audited, can't directly file!

 

[resjudicata]

@semaj02 Again, too bad Jio is gonna be listed in US.

 

[jamesgwal]

@resjudicata Did they confirmed it or its just speculation at this point?

 

[jesuschristismylord33]

@jamesgwal It's almost a certainty

 

[ray34iyf]

@jamesgwal Still speculation but people are betting here Jio's gonna get listed.

 

[joyfam]

@resjudicata How will this work out/ be bad for the average retail investor? Because the promotor group will remain the largest shareholder, irrespective of whether Jio lists on Nasdaq or NSE. I don’t think they’re going to screw themselves just to provide an exit to these PE funds.

 

[resjudicata]

@joyfam I don't want to invest in RIL but would have liked to invest in Jio. That will not be possible on NSE/BSE now.

 

[john025]

@resjudicata Not before India right?

 

[resjudicata]

@john025 Probably never in India

 

[john025]

@resjudicata Damn man! That's insane. Only way then is to increase exposure in RIL?

 

[resjudicata]

Sorry for asking this, how will it be bad for RIL share owners? Because they might list Jio Platforms as a new identity?

 

[resjudicata]

I didn't say that this is bad for RIL investors. It's bad for investors looking to invest in Jio.

 

[resjudicata]

It's bad for investors looking to invest in Jio.

How?

And if Jio Platforms is listed there and not RIL then how will it impact the current individual investors?

 

[resjudicata]

It will impact Indian investors wanting to invest exclusively in Jio.

 

[resjudicata]

Will they have to delist here before listing in foregin stock exchanges? If no then how will it impact?

You said wanting to invest exclusively in Jio. Jio Platforms will exclusively be Jio. Whereas RIL will be Jio+every other company of Ambani. So, what does exclusive mean here?

Sorry for so many questions, learning from members like you.