Saudi Arabia’s Public Investment Fund (PIF) will put £1.14 billion in Jio Platforms, marking its largest investment in India. The infusion will give the Kingdom-owned authority a 2.32% stake in Jio, the telecom-cum-digital services arm of Reliance Industries (RIL). PIF will be the 10th foreign backer of Jio, which has mobilised £11.6 billion since April. About 25% of Jio will be in the hands of external investors once all the deals are concluded. The outside money will be utilised by RIL to meet its pledge to cut down net debt, which had reached £16.1 billion, to zero before March 2021. The share-sale in Jio reflects RIL’s bet on the digital business as it reduces its dependence on industrial segments. PIF’s investment has assigned Jio a valuation of £51.6 billion, which is similar to the valuation given by the other financial investors of the company, such as General Atlantic, Mubadala and L Catterton. The £51.6 billion enterprise value sets a benchmark for Jio and will help RIL as it plans to take the unit public in the future. The Jio transaction follows PIF’s stake-sale in petrochemicals company SABIC to Saudi Aramco. Founded in 1971, PIF - among the top 10 sovereign wealth funds in the world - has assets worth $400 billion. “Reliance has enjoyed a long and fruitful relationship with Saudi Arabia for many decades. From oil economy, this relationship is now moving to strengthen India’s new oil (data-driven) economy, as is evident from PIF’s investment into Jio,” said RIL chairman Mukesh Ambani.
Urjit Patel to head govt think tank
Former RBI governor Urjit Patel has been appointed chairman of the National Institute of Public Finance and Policy (NIPFP) for a four-year term starting June 22. He will replace Vijay Kelkar, who has held office since 2014. The NIPFP is an autonomous research institute, which comes under the finance ministry. It acts as think tank for the government and conducts research on public finance and contributes to policy-making.
Most mall owners agree to retailers’ rental terms
In move that signals the end of the row over new rental agreements between mall owners and retailers due to Covid-19, nearly all malls across India barring one or two have agreed to the terms and conditions that retailers have put forward. This will result in these retailers and restaurateurs with around 300 brands among them to open all their outlets in over 600 malls, albeit in locations where malls are allowed to operate. Earlier, top retailers, including Levi’s, Bata, Tommy Hilfiger, Calvin Klein, Madura Garments, refused to open stores at malls as their demands of a full waiver along with further restructuring of rent through revenue share and reduction in minimum guarantee for six to nine months, were not met. “We have found a collaborative and satisfactory settlement with almost all landlord partners on both high streets and malls,” Sanjeev Mohanty, MD South Asia, Middle East & North Africa, Levi’s.
