Reliance Jio to raise Rs 20,000 crore via rights issue to meet funding requirements

New Delhi: 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 20 July, 2017 has decided to make a rights issue of four billion - nine percent 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. [caption id=“attachment_3837369” align=“alignleft” width=“380”] Representational image. Reuters[/caption] An aggressive newcomer, the Mukesh Ambani-led firm launched 4G services commercially on 5 September, 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 1 April, 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 11 April – 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. (Disclosure - Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)