- Reliance Jio today raises ₹25,215 crore from a Canadian asset management company, Brookfield’s subsidiary--BIF IV Jarvis India.
- Proceeds from the investment by Brookfield will be used to repay certain existing financial liabilities of Reliance Jio (RJIPL) and acquiring the balance 49% of equity share capital of RJIPL, currently held by RIL.
- These investments were made into investment trusts or INVITS floated by the Reliance Jio, into which it transferred its fibre optic and telecom tower assets in April this year.
Reliance Jio has today raised as much as ₹25,215 crore from a Canadian asset management company, Brookfield’s subsidiary--BIF IV Jarvis India. These investments were made into the tower assets, which is a newly formed entity.
This fund that the latest entrant into the telecom market has raised, will help it become a more independent company, releasing itself from the group that also houses retail and energy business.
“Proceeds from the investment by Brookfield will be used to repay certain existing financial liabilities of Reliance Jio (RJIPL) and acquiring the balance 49% of equity share capital of RJIPL, currently held by RIL,” the company said in a statement today.
The digital services arm of RIL has a debt of ₹170,654 crores, which is the most indebted business, much higher than its energy business, according to its first quarter results statement.
These investments were made into investment trusts or INVITS floated by the Reliance Jio, into which it transferred its fibre optic and telecom tower assets in April this year. The latest investment has come into the tower assets of the company.
Reliance Jio has managed to bag 322 million subscribers and has become the second largest telecom operator, within three years of its launch. In the months of May and April, it had added eight million subscribers and is growing at a rapid pace.
However, Jio has also been gathering as much debt not just because of the deep discounts it offers, but also because of its grand plans of expansion across wireless and wireline businesses. It has plans to take it fibre optic business to 1,600 towns and cities, making it necessary to bring in new investors who can support it.
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