Silver Lake's Investment in Reliance Jio - HDFC Securities

Views of Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Following the clue given by Reliance at the time of Facebook investment that it is in good shape to announce a similar-sized investment in the coming months, the investment by Silver Lake Partners to acquire 1.15% stake in Jio Platforms is welcome. The 12.5% higher valuation in this round may be due to much smaller investment by Silver Lake (compared to Facebook) and the fact that unlike Facebook they would operationally not bring any benefit on table. Also currently private equity investors seem to have more capital than they know what to do with. This announcement has helped to partly offset the negative effect on the stock price of subdued Q4FY20 results announced by the company on Apr 30.

Shares of RELIANCE INDUSTRIES LTD. was last trading in BSE at Rs.1467.05 as compared to the previous close of Rs. 1426.2. The total number of shares traded during the day was 1277127 in over 47637 trades.

The stock hit an intraday high of Rs. 1494.5 and intraday low of 1440. The net turnover during the day was Rs. 1876995490.

Source : Equity Bulls

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