Report: Reliance to invest Rs 20,000 crore in Jio to boost broadband and 5G services
RIL is likely to invest Rs 20,000 crore in Reliance Jio to boost broadband and 5G services.
Mukesh Ambani owned Reliance Industries Ltd is likely to invest Rs 20,000 crore in Reliance Jio to boost broadband and 5G services.
The report said that Jio will issue 4 billion non-cumulative optionally convertible preference shares to its parent at Rs 50 each for cash.
A source was quoted as saying, "The capital would be used to expand operations of Reliance Jio. The non-cumulative optionally convertible preference shares carry an interest rate of 9%."
To build capacity Reliance Jio continues to invest.
As on 31 March, RIL has an outstanding debt of more than ₹2.87 trillion, which increased by ₹69,000 crore due to investments in Jio during the year.
An analyst said, "Jio is now focused on reaching out to India's underserved homes and enterprise connectivity market. Its mobility services along with GigaFiber fixed-broadband services is where it is focusing now."
He further added that capital requirement for the telecom sector will stay high thanks to the constant infrastructure upgradation and the proposed 5G expansion.