Mukesh Ambani, the richest man of India is a heartthrob of many and an idol for all. But there are a few things which are not so popular about him but make us realize the ground reality. Mukesh Ambani donated about Rs 500 crore to the PM Cares fund and is helping everyone in need. But is he really helping all? Or just helping his own best friend, the PM of the country? The fact is that after donating such a heavy amount, after receiving a huge amount of money from Facebook for 10% stake in the company, Mukesh Ambani actually deducted his own staff’s salary in the name of COVID-19. What is this? So, you can donate money, take investments but not feed your own staff?
Is the richest man of India, rich by heart?
After so many investments and having such a large amount of charities, Ambani is cutting the salaries of his employees by stating the fact that he won’t be taking his own salary too. What about the shares he is buying of his own company? Does he really just sustain himself on the salary like the employees?
On May 4, a US private equity firm/ fund called Silver Lake Partners bought a 1.15% stake in Reliance Jio Platforms for $750 million (Rs 5,655 crore). On April 22, Facebook bought a 9.99% stake in Reliance Jio Platforms for a huge sum of $5.7 billion (Rs 43,574 crore).
And now, it is rumored that Jio will acquire a majority stake in the online pharmacy Netmeds for about $130-150 million and Ambani might also add some fresh capital so that the company can expand its operations. What is going on? When the whole world has stopped and can not move forward, people are dying of hunger and starvation, why are all these big transactions happening?
The question is, why are such huge companies investing in Jio and if so much investment is being made, why are the salaries of the staff capped? Why are tech companies like Facebook and Silver Lake rushing to invest in Jio?
Why are companies investing in Jio?
There must be something happening in Jio which is attracting so many people. But what can happen? They have already distributed free sim cards, given free internet. Now the next step might be coming up. The actual deal, the new project, 5G!
Reliance has always been dependent upon Samsung for the 4G network. Jio has been conducting 5G trials on Samsung smartphones. But the regulatory authority, Telecom Regulatory Authority of India (TRAI) has been pushing for local manufacture of telecom equipment since a few years. The country wants to promote domestic manufacturers and want to go for Indian development before any sort of international development. Jio has also stated that it won’t mix itself with any Chinese companies to get 5G to India. We think Ambani is just being a good wingman and helping his best man, Modi.
The share price of reliance has also gone up by 1% if we check the stats from today. The profits of the company will definitely be higher next year unlike other companies who are not able to operate right now.
Maybe it’s the time that we all believe that Jio will bless us with 5G and will open our minds to another level!