Reliance-Facebook deal: Valuation on expected lines, say analysts

For most analysts, the valuation of the Reliance Jio-Facebook deal is on expected lines. Early Wednesday, Facebook announced the signing of binding agreements for an investment of ₹43,574 crore into Mukesh Ambani’s Reliance Jio Platforms that values Jio Platforms at ₹4.62-lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of ₹70 to a US dollar).

“The valuation of Jio is in line with our valuation where we value Jio business at ₹4.59-lakh crore (EV of ₹773/share),” said IDBI Capital.

In reaction to the deal, shares of Reliance Industries jumped 7 per cent to ₹1,325 in opening session.