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Reliance Industries Gains 2% On Jio Platforms-Qualcomm Deal

Reliance Industries Gains 2% On Jio Platforms-Qualcomm Deal

Reliance Industries has become net debt-free much earlier than its target of March 2021.

Reliance Industries jumped 2 per cent in early trades after the US-based Qualcomm Incorporated's investment arm, Qualcomm Ventures, decided to buy a 0.15 per cent stake in Jio Platforms for Rs 730 crore. Jio Platforms is the digital services arm of Reliance Industries which houses telecom company Reliance Jio Infocomm. The deal, announced on Sunday, gives Jio Platforms an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. The shares of Reliance Industries opened at Rs 18908 aned touched an intra-day high of Rs 1,917.70, up 2 per cent, at the highest point of the day. At 9:25 am, the shares were trading at Rs 1,914, higher by Rs 35 or 1.8 per cent, on the BSE. 

Qualcomm's move comes at a time the government is preparing to auction 5G airwaves to telecoms service providers. This is the thirteenth investment in Jio Platforms since April 22. In total, Jio Platforms has so far raised Rs 1,18,318.45 crore within 12 weeks. Recent investors in Jio Platforms include US-based Facebook, General Atlantic, KKR and Intel Corporation, Abu Dhabi-based Mubadala and Abu Dhabi Investment Authority, and Saudi Arabia's Public Investment Fund.

Investments in Reliance Jio along with Reliance Industries' rights issue worth more than Rs 53,000 crore have helped the conglomerate become net debt-free much earlier than its target of March 2021.

Meanwhile, Reliance Industries will hold its Annual General Meeting (AGM) on July 15 i.e. Wednesday through video conferencing, in wake of the Covid19 pandemic. A virtual AGM is the first of its kind for the country's leading conglomerate,

The BSE Sensex was trading at 36,963, higher by 377 points or 0.1 per cent and the NSE Nifty was at 10,883, up 119 points or 1.1 per cent at the time.