Mumbai, Reliance Industries on Friday said that it will set up a wholly-owned subsidiary for its digital platform initiatives with an investment of Rs 1.08 lakh crore.
Accordingly, the company’s move will lead to the creation of the largest digital services platform company in India.
“The board of directors of RIL today approved the formation of a wholly-owned subsidiary (WOS) for ‘Digital Platform’ initiatives and investment of Rs 108,000 crore in the WOS through OCPS (optionally convertible preference shares),” RIL said in a statement.
“The WOS will also acquire RIL’s equity investment of Rs 65,000 crore in RJIL,” it added.
On its part, the board of directors of Reliance Jio Infocomm Limited (RJIL) approved a scheme of arrangement between RJIL and certain classes of its creditors, including debenture holders, for transfer of identified liabilities of up to Rs 108,000 crore to RIL.
“Rights issue of OCPS aggregating up to Rs 108,000 crore for the purpose of payment of consideration for transfer of identified liabilities – WOS to subscribe to this issue,” the statement said.
Consequently, RJIL will become virtually a net debt free company by March 31, 2020, with exception of spectrum related liabilities...