Reliance JioPlans to Raise INR 15,000 Crores

Reliance Jio will soon be raising INR 15,000 crores by issuing rights. The announcement was made in a notice sent to the National Stock Exchange on the 18th of January.

Details of the Notice

The company revealed that the issue will be open to all of its shareholders, primarily those of Reliance Industries. With the approval of a further issue of equity shares, valued at INR 10 each, INR 15,000 crores will be aggregated, on a rights basis, to existing shareholders.

The MukeshAmbani-led company has an INR 1,00,000 crore capex plan by April, when it begins operations. The company has already invested a considerable amount, with the bulk of its INR 85,000 crore expenditure on airwaves across spectrum bands.

Recently, Reliance Jio also revealed that it has entered into an agreement with Reliance Communications that will cost it an estimated INR 4,500 crore. The agreement is focused on buying and sharing of spectrums.

The financial facet of the agreement will have to be executed swiftly, as Rcom will need to secure the spectrum liberalization by Friday, through a payment to the Department of Communications. This spectrum is essential for Jio to finalize its 4G network preparations across the 800MHz band in India.

INR 3,500 crores Raised through Debentures

Reliance Jio has used private placement for the issuance of non-convertible debentures, helping raise INR 3,500 crores. This includes 5 and 10 year debentures, with the redemption dates for them being 21st January, 2020 and 21st January, 2025, respectively. The company also stated that disclosure documents were submitted in July 2015, for 35,000 secured redeemable non-convertible debentures. With a face value of INR 10,00,000 each, this results in the aggregation of INR 3,500 crores.

Summary

Jio will be raising INR 15,000 crores by issuing rights on the NSE.

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