Adia and Saudi Arabia's PIF invest $1bn in Ambani's Reliance Industries' fibre-optic unit
01 November, 2020
Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund invested 75.6 billion Indian rupees ($1bn) in Reliance Industries’ Digital Fibre Infrastructure Trust.
Both state entities each paid 37.8bn rupees to get units in the trust that oversees the Indian conglomerate’s fibre optic assets, Reliance Industries said within an investor presentation on Friday.
The business underscored the "induction of strong partners for managing [a] critical asset base," based on the presentation.
Adia and the PIF have previously committed to Reliance Industries.
India’s most effective company is expanding into retail and technology in a bid to utilize the country's consumer boom and move from its core oil-refining business.
Adia said it plans to get 55.12bn rupees in Reliance Retail Ventures, the country's largest retail chain.
PIF invested 113.67bn rupees in Reliance Industries' Jio Platforms in substitution for a 2.32 % stake.
Reliance Industries posted a 15 % drop in quarterly profit on Friday as the Covid-19 pandemic hurt its coal and oil business unit. However, revenue from its telecoms business softened the blow.
Net profit for the three months to the end of September fell to 95.7bn rupees from this past year, the Mumbai company said in a bourse filing on Friday. Quarterly income fell by 24 per cent to 1 1.16 trillion rupees.
“We continue steadily to pursue growth initiatives in each of our businesses with a focus on the India opportunity,” Reliance chairman Mukesh Ambani, 63, said.
Refining and petrochemicals earnings in the company’s core coal and oil exploration business fell by 36 per cent and 23 %, respectively.
“Domestic demand has sharply recovered across our O2C [oil-to-chemicals] business and is now near pre-Covid levels for most products,” Mr Ambani said.
Reliance Retail Ventures recorded a 4.9 % decline in quarterly profit.
“Retail business activity has normalised, with strong growth in key consumption baskets as lockdowns ease in the united states,” Mr Ambani said.
Reliance’s Jio posted a net profit of 28.44bn rupees, compared with 9.9bn rupees in the same quarter this past year. Its earnings rose by 33 % as the quantity of subscribers exceeded 400 million.
“With large capital raise in last half a year across [the] Jio and Retail businesses, we have welcomed several strategic and financial investors into the Reliance family,” Mr Ambani said.
Source: www.thenationalnews.com
TAG(s):