Reliance Ind to infuse Rs 15,000cr in telecom arm via rights issue

Reliance Industries Ltd (RIL) plans to infuse an additional Rs 15,000 crore in its telecom arm Reliance Jio through a rights issue, after a similar size issue in January this year.

The company will issue 1,500 crore equity shares of Rs 10 each aggregating to Rs 15,000 crore to the existing equity shareholders of the company on rights basis, the company said in a regulatory filing. The issue is expected to be completed in the next three months.

The rights issue will increase Reliance Jio equity to Rs 60,000 crore from Rs 45,000 crore, making it one of the most capitalized telecom companies in India.

Mukesh Ambani-led Reliance Industries has already invested about Rs 1,30,000 crore in its telecom arm, which includes the investment on the spectrum. The company is slated to launch its high-speed broadband and 4G telecom services in coming weeks, which according to industry experts will disrupt the market. It is already offering services for a limited number of users on a trial basis, integrating spectrum and testing the network. The company has already garnered over 1.5 million users in its beta tests.

Jio is expected to offer high-speed data at a very low price or may bundle free voice calls to lure users in the world’s second-largest smartphone market. The company was initially offering 4G SIM cards bundled with its LYF smartphones, priced at as low as Rs 2,999. The company may also tie up with Samsung and iPhones also.

Ambani in March had stated that Jio will offer mobile broadband speeds that are 40 to 80 times faster than current average speeds, as its network is designed to provide 10 gigabytes of monthly data for every user.