RJio to raise Rs 15,000 cr in India's second largest rights issue
Reliance Jio Infocomm Ltd (RJIL), the unlisted subsidiary of Reliance Industries Limited (RIL) on Monday announced a plan to issue 15 billion equity shares of Rs 10 each to the existing shareholders (to raise Rs 15,000 crore) ahead of the launch of the 4G telecom services in April. This is the second largest rights issue announced after State Bank of India, which had raised Rs 16,700 crore in January 2008. RJio’s shareholders include RIL - which owns close to 99.16 per cent stake while around one per cent is owned by the Nahatas of HFCL in a personal capacity. This means 99 per cent of the Rs 15,000 crore will come from RIL’s coffers. As on September last year, RIL had cash equivalents and investments of Rs 87,911 crore. RIL’s board of directors is meeting on Tuesday to announce its December quarter results and is expected to take a call on the investment. RIL has invested Rs 30,000 crore in RJio in the form of equity and also provided guarantee to RJIL’s debt obligation...