Reliance Industries to invest Rs15,000 crore more in Jio
Reliance Industries will invest the money in Jio through an issue of non-cumulative optionally convertible preference shares
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Mumbai: Reliance Jio Infocomm Ltd Monday said its parent Reliance Industries Ltd will invest Rs15,000 crore more in the company through an issue of non-cumulative optionally convertible preference shares.
This issue substitutes a rights issue that the company had planned earlier.
“The board of directors at its meeting held on September 12, 2016 has decided to make rights issue of 300 crore 9% non-cumulative optionally convertible preference shares (OCPS) of Rs10 each for cash, at a premium of Rs40 per OCPS, aggregating to Rs.15,000 crore,” the company said.
Each OCPS shall be either redeemed at a value of Rs50 per OCPS or converted into five equity shares of Rs10 each at any time at the option of the company, but not later than 10 years from the date of allotment of OCPS.
The board of Reliance Jio had on 14 July approved the issue of 1,500 crore equity shares of Rs10 each, aggregating to Rs15,000 crore.