RIL to invest Rs15,000 crore more in Jio

NEW DELHI: Reliance Jio Infocomm Ltd (RJIL) said that its parent Reliance Industries Ltd (RIL) will invest Rs 15,000 crore more in the company through an issue of non-cumulative optionally convertible preference shares.

"We refer to the communication dated July 14, 2016 informing about the decision of the Board of Directors of the Company at its meeting held on July 14, 2016, to issue 1500,00,00,000 Equity Shares of Rs 10 each aggregating to Rs. 15,000 crore on rights issue basis," RIL said in a statement.

"The Board of Directors at its meeting held on September 12, 2016 has decided to make rights issue of 300,00,00,000 – 9% Non-Cumulative Optionally Convertible Preference Shares (‘OCPS’) of Rs. 10/- each for cash, at a premium of Rs. 40 per OCPS, aggregating to Rs. 15,000 crore in substitution of the earlier rights issue of Equity Shares of the Company approved by the Board at its meeting held on July 14, 2016," it added.

"Each OCPS shall be either redeemed at a value of Rs. 50 per OCPS or converted into 5 Equity Shares of Rs. 10 each at any time at the option of the Company, but not later than 10 years from the date of allotment of OCPS," it said.

Recently, the company has started its 4G services on September 5 and will offer free phone call and high speed data services for free till December 31.