Reliance Jio to invest Rs 30,000 crore more to expand 4G coverage and capacity

Follow Us

Reliance Jio on Friday said that it will invest Rs 30,000 crore more into networks to enhance coverage and capacity across the country. Reliance Industries Limited (RIL), the parent of Jio, has already infused Rs 1,71,000 crore in the telecom venture so far.

The move comes at a time when top telcos in the country have enhanced their spendings on 4G network expansion to take on Jio.




Reliance Jio, which launched commercial operators in September 2016, has so far added over 67 million 4G subscribers in India. It has been offering free voice and data services along with free access to digital services.

Reliance Jio, in a rights issue notice for existing shareholders, said, "In view of the unprecedented customer response to RJIL's services as well as address the anticipated growth in demand for digital services, additional investments are proposed to be made into the network to enhance its coverage and capacity."

jio

Jio added that the new investment is proposed to be financed largely through an equity offering to strengthen its balance sheet for growth.

In the right issue notice, the telco also informed that its board of directors in a meeting held on January 13, 2017, has decided to make a rights issue of 6 billion - 9% non-cumulative optionally convertible preference shares of Rs 10 each for cash, a premium of Rs 40 per OCPS, aggregating Rs 30,000 crore.

Also read: Reliance Jio’s new strategy to curb top level attrition: Esops

The company added that the amount paid on each optional convertible preference shares (OCPS) shall be redeemed at Rs 50 or converted to 5 equity shares at Rs 10 each at any time at the option of the company, but not later than 10 years from the date of allotment of the OCPS.

Reported By

Telecom Analyst

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

Recent Comments

Faraz :

BSNL can never compete with Airtel 's NSA 5G, forget Jio SA 5G. But they could get some customers if…

Let’s Talk: BSNL’s Delays in Launching 4G is Leading to…

Shivraj Roy :

just yesterday i took a airtel postpaid sim for my sister and had the 399rs plan ,i dont see any…

Airtel Hits 3 Million 5G Users Milestone in Mumbai

Faraz :

Mumbai was strong circle for Vi till 2023. Due to lack of 5G, they be loosing by huge number.

Airtel Hits 3 Million 5G Users Milestone in Mumbai

Faraz :

BSNL has 2G on B8 and it will stay like that until 4G is rolled out in every state. There…

Let’s Talk: BSNL’s Delays in Launching 4G is Leading to…

TheAndroidFreak :

BSNL 5G can wait as they cannot compete with Jio 5G yet without backhaul and coverage. So they should focus…

Let’s Talk: BSNL’s Delays in Launching 4G is Leading to…

Load More
Subscribe
Notify of
37 Comments
newest
oldest most voted
Inline Feedbacks
View all comments