Reliance Jio to raise Rs 20,000 crore via rights issue to meet funding needs
The company started charging for mobile services from April 1.business Updated: Jul 21, 2017 00:29 IST
Reliance Jio, the latest entrant in the telecom sector, will raise Rs 20,000 crore through a rights issue to meet funding requirements.
“The Board of Directors at its meeting held on July 20, 2017 has decided to make a rights issue of four billion - nine per cent non-cumulative optionally convertible preference shares (OCPS) of Rs 10 each for cash, at a premium of Rs 40 per OCPS, aggregating Rs 20,000 crore,” Reliance Jio Infocomm said in a regulatory filing.
An aggressive newcomer, the Mukesh Ambani-led firm launched 4G services commercially on September 5, 2016 with free data and voice offerings, and signed up the first 50 million subscribers in just 83 days.
The company started charging for mobile services from April 1, but continues to offer disruptive data rates and free voice calls.
Earlier this month, Jio rolled out new plans after its Dhan Dhana Dhan offer -- launched on April 11 -- reached the maximum allowed 90-day period.
It has lowered validity and data on a revamped Rs 309 plan, but is dishing out a bumper 84GB for Rs 399. Jio had over 112 million users at the end of April 2017.