Reliance Jio to invest Rs 30,000cr more to improve its network coverage

Reliance Jio is growing at a steady pace with ever increasing user base in the telecom industry. However, the telco is yet to quell constant call drops and network coverage issues. Hence, after investing Rs 1.71 lakh crores, the company has decided to infuse Rs 30,000 crore more into Reliance Jio Infocomm.

Aiming to fuel its digital expansion and enhance the network coverage and capacity, the company has decided to sell Rs 600 crore preference shares through a rights issue to raise the said amount. These preference shares will be 9 percent non-cumulative optionally convertible available at Rs. 50 each, including a premium of Rs. 40.

The company in a statement to the National Stock Exchange said that the amount paid on each optional convertible preference shares (OCPS) shall be redeemed at Rs 50 or converted to five equity shares at Rs 10 each at any time at the option of the company, but not later than 10 years from the date of allotment of the OCPS.

Within four months of launch, Reliance Jio has managed to get 72.4 million subscribers, courtesy its free data and voice offers. Bringing the first next-generation 4G voLTE offers to users bundled with voice+data free services, has led to price wars among incumbents like Vodafone, Idea Cellular and Airtel.

The company is also planning to launch a Rs 999 voLTE smartphone to further expedite the reach of its telecom services.