Reliance Industries (RIL) has received an approval from board of directors for the formation of wholly-owned digital services subsidiary with a capital infusion of Rs 1.08 lakh crore. The new company will become the conglomerate's umbrella platform for all digital businesses including Jio. The Rs 1.08 lakh crore investment will be in the form of a rights issue of optionally convertible preference shares (OCPS).
The wholly-owned subsidiary will also acquire RIL's equity investment of Rs 65,000 crore in Jio so far, making it virtually net debt-free by March 31, 2020, with the exception of spectrum-related liabilities.
Reliance Industries is India’s largest private sector company. The company’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services.