Just In
- 5 hrs ago Moto G64 5G vs Vivo T3x 5G vs Realme P1 5G: Battle of the Affordable 5G Smartphones!
- 13 hrs ago 11 Exciting Features Coming With Android 15: Satellite Connectivity, App Pairs, App Archiving, and More
- 14 hrs ago Best Phones Under Rs 15,000 That Are Optimised for BGMI (PUBG Mobile)
- 1 day ago Best Noise-Cancelling Earbuds Under Rs 5,000: CMF Buds Pro, Redmi Buds 5, Realme Buds Air 5, and More
Don't Miss
- News Karnataka College Neha Murder Case: Two Arrested For 'Neha-Fayaz True Love' Online Post
- Sports KKR vs RCB Twitter Reaction: Harsha Bhogle 'Exhausted', Gambhir hails RCB as Kolkata break Virat Kohli and Bengaluru Hearts with Thrilling Victory
- Movies Love Sex Aur Dhokha 2 Cast Salary: HOW MUCH Was Mouni Roy Paid For Her CAMEO In LSD 2? GUESS The FEE -
- Lifestyle World Earth Day 2024 Wishes, Greetings, Images, Twitter Status And Instagram Captions
- Automobiles Ensuring Car Fitness Ahead Of A Road Trip: Top Tips & Tricks You Need To Know
- Finance 95-Yrs Old Bank To Consider 21st Dividend, Buy For TP Rs 32.4/Share; 2-Yrs Return 265%
- Education Assam Class 10 Result 2024 Declared: Anurag Emerged as the Top Performer With 593 Marks
- Travel Journey From Delhi To Ooty: Top Transport Options And Attractions
Reliance Jio Is Now Net Debt-Free; How Did It Manage Eight Months Ahead Of Target?
Indian telecom industry seems to be going through its worst nightmare as a majority of operators are being crippled due to huge debts. While most of them are still finding ways to rise above the situation, Reliance has managed to emerge as a debt-free operator. But the bigger question is how they managed to pull off the unimaginable?
After raising more than Rs. 168,818 crores, Reliance Industries has now announced that it has become a debt-free firm. The statement comes after Jio sold 2.32 percent stake to Saudi Arabia's Public Investment Fund (PIF).
Reliance had a debt of Rs. 161,035 crores, as of March 31st, 2020. However, the firm raised Rs. 115,693.95 crores and Rs. 53,124.20 crores by selling stakes to 10 global investors and RIL's rights issue. It is worth mentioning that Reliance Jio sold its 24.70 percent stake to 10 investors, such as Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, and now PIF. The company has sold the stake in only 58 days.
Which Companies Saved The Day For Reliance Jio
Facebook was the first to come at Reliance's rescue, where it's buying 9.99 percent in Reliance Jio platforms. The social media giant is investing around Rs. 43,574 crore.Next was Silver Lake that shared its plans to invest Rs. 10, 202 crore in Jio. The firm is buying a 2.08 percent stake, while Vista Equity Partner will grab hold of a 2.32 percent stake with an investment of Rs. 11, 367 crore. General Atlantic has committed to buy a 1.34 percent stake for Rs. 6,598.38 crore. Then, KKR announced that it will purchase a 2.32 percent stake for Rs. 11, 367 crore.
Besides, the Abu Dhabi-based Sovereign Wealth Fund Mubadala Investment will bring in Rs. 9,093.60 crores to buy only 1.85 percent stake. ADIA has also shared its plans to invest Rs. 5,683.5 crores to buy a 1.87 percent stake. Similarly, TPG and L Catterton have also announced to inject Rs. 6,441 crores in Jio platforms. Lastly, PIF is buying a 2.32 percent stake in Jio platforms.
The company has sold its stake to 10 investors in just 58 days, which puts it way ahead of other operators. In fact, following these investments, Reliance Jio has now become debt-free, while both Airtel and Vodafone-Idea are facing a lot of issues to clear their AGR dues. This means that Reliance Jio will keep investing in new technologies, while others will have to figure out solutions to pay their debts.
Apart from that, the Reliance Jio will keep bringing attractive offers to get Airtel and Vodafone- Idea subscribers on its platforms, In fact, the operator can handle pressure on its revenues to get the more subscribers. This also means that sooner or later Reliance Jio might become the only operator that will have more than 500 million customers on its platform.
On the other hand, both operators have to find global investors who are ready or willing to invest in their firms. Similarly, they have to increase the prices of their tariff plans to increase their APRU. In addition, they have to offer the best network coverage in the country to compete with Reliance Jio.
-
99,999
-
1,29,999
-
69,999
-
41,999
-
64,999
-
99,999
-
29,999
-
63,999
-
39,999
-
1,56,900
-
79,900
-
1,39,900
-
1,29,900
-
65,900
-
1,56,900
-
1,30,990
-
76,990
-
16,499
-
30,700
-
12,999
-
18,800
-
62,425
-
1,15,909
-
93,635
-
75,804
-
9,999
-
11,999
-
3,999
-
2,500
-
3,599