Reliance Industries will infuse another Rs 15,000 crore in its telecom arm Jio through a rights issue.
"We wish to inform you that the Board of Directors of the company at their meeting held on July 14 approved further issue of 1,500 crore equity shares of Rs 10 each aggregating to Rs 15,000 crore to the existing equity shareholders of the company on rights basis," the company said in a regulatory filing.
The issue is expected to be completed in the next three months.
The rights issue, which follows a similar size issue in January this year, will increase the equity of Reliance Jio to Rs 60,000 crore from Rs 45,000 crore, making it one of the most capitalised telecom companies in India.
Billionaire Mukesh Ambani-led Reliance Industries is said to have invested about Rs 1,30,000 crore in its telecom arm including the investment on spectrum or airwaves; and the total investment may top Rs 1,50,000 crore.
The company is slated to launch the much-talked about high-speed broadband and 4G telecom services in coming weeks.
It is already offering services for a limited number of users on a trial basis, integrating spectrum and testing the network.
Jio, which has 1.5 million customers in its beta tests, may offer high-speed data at very low price or may bundle free voice calls to lure users in the world's second-largest smartphone market.
While the company initially offered 4G SIM cards bundled with its LYF smartphones, priced at as low as Rs 2,999, Jio is offering services with Samsung phones and may expand it to include iPhones in near future.
Jio is offering 90 days of free unlimited 4G mobile Internet and voice calling in the SIM cards.
Ambani had in March stated that Jio would offer mobile broadband speeds that are 40 to 80 times faster than current average speeds. Jio's network, he had said, was been designed to provide 10 gigabytes of monthly data for every user. Disclosure: Network 18, which publishes moneycontrol.com, is now part of the Reliance Group.
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