Google pays Rs 33,737 crore to Jio Platforms for 7.73% stake

Alphabet Inc's Google has paid Rs 33,737 crore to Reliance Industries Ltd's (RIL) digital subsidiary Jio Platforms for a 7.73 per cent stake in it. The transaction also marks the US technology giant's biggest-ever investment in an Indian company.

RIL in a regulatory filing has said, "After receipt of all requisite approvals, Jio Platforms Limited, a subsidiary of the Company, today received the subscription amount of Rs 33,737 crore from Google International LLC (a wholly owned subsidiary of Google LLC). Jio Platforms Limited has allotted equity shares to Google International LLC following which Google International LLC holds 7.73 per cent of the fully diluted equity share capital of Jio Platforms Limited."

With this transaction, Google has joined a list of global investors such as Facebook, who have infused capital in the Jio platforms. With this, Jio Platforms has raised a total of Rs 1.52 trillion by selling nearly 33 per cent stake to 13 financial and strategic investors in just 11 weeks. This has helped RIL erase its net debt much ahead of the March 2021 target.

The Competition Commission of India (CCI), two weeks ago, approved the internet giant Google's bid to pick 7.73 per cent stake in the Mueskh Ambani-led Jio Platforms for Rs 33,737 crore facilitating the internet major and Jio Platforms Ltd (JPL) to develop and launch Android smartphones in India.

CCI tweeted, "Commission approves acquisition of 7.73% equity share capital of Jio Platforms by Google."

The two companies, Jio Platforms and Google in July said that they will also collaborate to develop an entry-level affordable smartphone with optimisations to the Android operating system and the Play Store.