(LiveMint)
Reliance Industries Ltd (RIL) will invest ₹20,000 crore in its telecom business, Reliance Jio Info comm Ltd, to fuel its broadband and e-commerce play and enter 5G services in the future, two people aware of the matter said. Reliance Jio will issue 4 billion non-cumulative optionally convertible preference shares to its parent at ₹50 each for cash, the persons cited above said on condition of anonymity.
“The capital would be used to expand operations of Reliance Jio. The non-cumulative optionally convertible preference shares carry an interest rate of 9%,” the first of the two people said.Reliance Jio did not reply to an email seeking comment. “Capital requirement for the telecom sector will stay high thanks to the constant infrastructure upgradation and the proposed 5G expansion. 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,” said an analyst at a domestic brokerage.
