RIL AGM: From 'free' JioPhone to 1:1 bonus share issue; highlights of Mukesh Ambani's speech

Reliance Industries launched a low-cost phone with 4G-enabled features on Friday in a bid to woo tens of millions of low-income users to its upstart telecom venture Jio service. The handset, named JioPhone, will “effectively cost zero” as buyers will be able to get the device for a one-time refundable security deposit of Rs 1,500 ($23.32), Reliance chairman, Chairman Mukesh Ambani, said, announcing the launch at the petrochemicals-to-retail conglomerate’s 40th annual general meeting (AGM). The launch was widely anticipated as Ambani uses the company’s annual general meeting to make key launch announcements that have in the past disrupted sectors. [caption id=“attachment_3839963” align=“alignleft” width=“380”]  Reuters[/caption] Ambani also announced a 1:1 bonus share issue for the shareholders, which is to be approved by all the shareholders through a postal ballot. Here are the highlights from Ambani’s speech: On Jio phone: * Out of 78 crore mobile phones in India, 50 crore feature phone users left out of digital revolution * Reliance Jio committed to ending “digital disempowerment and unfairness” by providing affordable data and devices * Announces launch of Jio phone, a feature phone loaded with smartphone features * Reliance Jio phone to be “most intelligent, affordable phone” in the world – a 4G LTE phone supporting all 24 Indian languages * Reliance Jio phone truly revolutionary; on Jio phone, voice will always be free * From 15 August, digital freedom for all feature phone users; Reliance Jio will give access to unlimited data on Jio phone * Jio phone to cost effectively Rs 0 as against Rs 3-4.5k for a smartphone price * A full refundable deposit of Rs 1,500 to be paid for Jio phone to prevent misuse; money to be refunded after 36 months on return of phone * Jio phone to be available for pre-booking from 24 August; all Jio phones will be Made in India from the last quarter On Reliance Jio * Reliance Jio has 125 million customers today, added 7 customers per second every single day * In just 6 months of Jio launch, data consumption in India went to 120 cr GB a month, from 20 cr GB * India has overtaken US and China in mobile data usage On Reliance Industries * Reliance Industries’ turnover up 4,700 times to over Rs 3,30,000 crore in 40 years; profit grows 10,000 times to Rs 30,000 crore * Rs 1,000 invested in Reliance shares in 1977 today worth Rs 16,54,503 – over 1,600 times more valuable * To issue 1 bonus share issue for every share held With inputs from agencies