wordpress blog stats
Connect with us

Hi, what are you looking for?

, , , , ,

Reliance Jio to raise ₹20,000 crore via issue of preference shares

Mukesh Ambani led Reliance Jio is raising ₹20,000 crore via issue of new shares, the company informed BSE. The company said that it will issue Optionally Convertible Preference Shares (OCPS) amounting to Rs 20,000 crore. The board had approved the fund raise yesterday: “The Board of Directors at its meeting held on July 20, 2017, has decided to make a rights issue of 4 billion—9% Non-Cumulative Optionally Convertible Preference Shares of Rs.10/- each for cash, at a premium of Rs. 40/- per OCPS, aggregating to Rs.20,000 crore.”

Convertible preference shares are corporate fixed-income securities. After a prefixed time span or on a specific date the investor can choose to turn OCPS shares into a certain number of shares of the company’s common stock (or ownership). The BSE filing added that an investor holding OCPS shares can redeem them at Rs 50 or convert it into five equity shares of Rs 10 each, “at any time at the option of the company, but not later than 10 years from the date of allotment”.

The new investment comes at a time when Jio’s freebies are ending, while also making its mark into the fibre broadband and DTH space. This is RIL’s 7th investment into its telecom unit since 2015:

  • In June this year, Reliance Industry Limited’s (Jio’s parent company) board approved a fund raise of ₹25,000 crore via issue of new secured/unsecured redeemable non-convertible debentures, in one or more series/tranches.
  • In January, Jio planned to invest ₹30,000 crore for expanding its 4G coverage and network capacity, taking the overall investment in the telecom unit to approximately ₹1.9 lakh crore.
  • In July last year, just a month before the public rollout of its network, RIL invested ₹15,000 crore into Jio through a rights issue.
  • In the same month, Jio raised ₹2,000 crore through 5 year bonds on a private placement basis.
  • In October 2015, Jio raised ₹3000 crore by issuing redeemable non-convertible debentures.
  • In May 2015, the company had raised a $750 million loan (₹4500 crore) from nine banks on a 10 year repayment period.

RIL’s offline retail stores sold 1.5 million LYF phones

RIL’s consumer electronics division comprising of Reliance Digital, Jio stores, device distribution and connectivity services delivered strong growth. As of Q1 FY18, the company claims to have 2,000 stores in 700 cities, which includes both Reliance Digital and Jio. RIL’s offline retail device distribution business sold 1.5 million LYF devices and accessories during the same quarter. Overall, Reliance Retail added 18 stores during Q1 FY18 and operated 3,634 stores across 703 cities with an area of over 13.8 million sqft as on 30th June, 2017.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



The Delhi High Court should quash the government's order to block Tanul Thakur's website in light of the Shreya Singhal verdict by the Supreme...


Releasing the policy is akin to putting the proverbial 'cart before the horse'.


The industry's growth is being weighed down by taxation and legal uncertainty.


Due to the scale of regulatory and technical challenges, transparency reporting under the IT Rules has gotten off to a rocky start.


Here are possible reasons why Indians are not generating significant IAP revenues despite our download share crossing 30%.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ