Twitter
Advertisement

Rjio to raise Rs 20,000 crore via rights issue

Board of Directors to make a rights issue of four billion shares of rs 10 each at a premium of Rs 40

Latest News
article-main
Mukesh Ambani
FacebookTwitterWhatsappLinkedin

Mukesh Ambani's group firm Reliance Jio (Rjio) will raise Rs 20,000 crore through a rights issue to meet its funding requirements.

"The Board of Directors at its meeting held on July 20, 2017 has decided to make a rights issue of four billion — 9% non-cumulative optionally convertible preference shares (OCPS) of Rs 10 each for cash, at a premium of Rs 40 per OCPS, aggregating Rs 20,000 crore," Reliance Jio Infocomm said in a regulatory filing on Thursday.

Reliance Jio had launched 4G services commercially on September 5, 2016 with free data and voice offerings. It acquired its first 50 million subscribers in just 83 days and 100 million came in 170 days. The company started charging for mobile services from April 1, but continues to offer disruptive data rates and free voice calls.

Earlier this month, Jio rolled out new plans after its Dhan Dhana Dhan offer — launched on April 11 — reached the maximum allowed 90-day period. It has lowered validity and data on a revamped Rs 309 plan, but is dishing out a bumper 84 gb for Rs 399. Jio had over 112 million user announcement of last month about raising Rs 25,000 crore via non convertible debentures for further investments into its disruptive telecoms at the end of April 2017.

Around 2 lakh crore has already been invested in Reliance Jio.

On Friday, in the Reliance Industries AGM, a big announcement related to Reliance Jio is expected to be made.

RJio's innovative market approach backed by superior HD quality VoLTE voice and data strong network has unlocked latent demand for data and growth ahead of all industry estimates, the company said.

Reliance Jio is also in the process to launch optical fibre-based home broadband services under the name of Jio Fibre. The trials are going on.

The entry of Reliance Jio into the sector has intensified the competition in the telecom industry with existing operators including Bharti Airtel, Vodafone and Idea seeing a hit in their financials after matching tariffs of Jio.

...& ANALYSIS

  • RJio’s innovative market approach has unlocked latent demand for data, it said
     
  • It is in the process to launch optical fibre-based home broadband services
Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement