Reliance Jio Infocomm on Wednesday said it plans to raise up to Rs2,250 crore through issuance of redeemable non-convertible debentures on a private placement basis. The Mukesh Ambani-led company is looking at the commercial launch of its 4G services later this year.
“Pursuant to the approval of the board of directors and shareholders, the company proposes to issue secured redeemable non-convertible debentures aggregating up to Rs2,250 crore, on a private placement basis,” the company said in a regulatory filing.
last May, the company had raised $750 million or about Rs4,500 crore from a consortium backed by Korea Trade Insurance Corporation to buy telecom equipment from Samsung Electronics and Ace Technologies.
Moreover, the company announced to raise Rs4,500 crore through debentures in July. As per a Morgan Stanley research note, Reliance Jio may launch services in a couple of months and is likely to net $1 billion revenue in the current fiscal.
Reliance has so far spent $19 billion on the telecom venture, it noted. In December, RJio launched services for its employees, partners and vendors on a trial basis. It has 0.56 million users with average monthly data usage per user at 18 GB.
Meanwhile, the research note said that Reliance Jio Infocomm, is expected to have at least 30 million subscribers by end of this financial year with a revenue of over $1 billion.
“We estimate Reliance Jio to have 30 million subscribers by FY2017 and 60 million by FY2018 with an ARPU (average revenue per user) of 1.3x -1.8x vs the current industry ARPURs.200, thus generating over $1 billion revenues in FY2017,” the report added.