RIL debt reallocation a step towards Jio monetisation: Emkaya

The recent announcement of Reliance Industries (RIL) to transfer Jio’s debt internally was a step towards monetisation of the telcom arm, Emkay Financial said.

RIL has announced that it’s setting up a wholly-owned subsidiary called ‘Jio Platforms Limited’ (JPL) for its digital platform initiatives.

RIL will infuse additional Rs 1.08 lakh crore of equity/OCPS into JPL, which will invest the amount in Jio. JPL will have Rs 5,000 crore in equity capital and acquire Rs 4,500 crore of equity shares and Rs 20,000 crore of OCPS in Jio from RIL.

RIL’s present equity investment in Jio is Rs 65,000 crore. Through a separate arrangement, most debt of Jio will be taken over by RIL.