Reliance Jio To Invest Rs 30,000 Crore To Enhance Network Coverage
Within four months of its commercial launch, the company garnered 72.4 million subscribers.
New telecom operator Reliance Jio Infocomm Ltd. is planning to invest an additional Rs 30,000 crore to expand coverage and increase network capacity. With this, its total investment in the network will reach close to Rs 1.9 lakh crore.
"In view of the unprecedented customer response to Reliance Jio’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," Reliance Jio said in a rights issue notice for existing shareholders on Friday. These investments are proposed to be financed largely through an equity offering to strengthen its balance sheet for growth, it added.
"The company wishes to inform that board of directors at its meeting held on January 13, 2017, has decided to make a rights issue of 6 billion - 9 percent non-cumulative optionally convertible preference shares of Rs 10 each for cash, a premium of Rs 40 per OCPS, aggregating Rs 30,000 crore," the notice read.
As of December 31, within four months of its commercial launch, the company garnered 72.4 million subscribers.
It started offering free 4G service during the trial phase which it continued even after its commercial launch on September 5. Jio is also offering free unlimited local and STD call for lifetime even during roaming.
Reliance Jio has extended its free 4G service till March 31, 2017.