Reliance Jio to raise Rs 20,000 crore through rights issue

Company will sell optionally convertible preference shares through rights issue to existing shareholders to raise the funds.

Reliance Jio on Thursday announced that it will sell optionally convertible preference shares through rights issue to existing shareholders to raise Rs 20,000 crore.

Jio is a wholly-owned subsidiary of RIL.

In a regulatory filing with both the Bombay Stock Exchange and the National Stock Exchange, Reliance Jio Infocomm Ltd said its board of directors at a meeting on Thursday had decided to make a "rights issue of 4 billion — 9 per cent non-cumulative optionally convertible preference shares (OCPS) of Rs 10 each for cash at a premium of Rs 40, aggregating to Rs 20,000 crore."

The amount subscribed on each OCPS shall be wither redeemed at Rs 50 each or converted into five equity shares at any time at the option of the company, but not later than 10 years from the date of allotment, the filing said.

RIL will hold its Annual General Meeting on Friday.