RIL to set up a wholly-owned subsidiary for digital platform initiatives

Reliance Industries Ltd on Friday said its board has approved the formation of a wholly-owned subsidiary for digital platform initiatives and investment of Rs 1.08 trillion in the unit.

The subsidiary will also acquire RIL’s equity investment of Rs 65,000 crore in Reliance Jio Infocomm Ltd (RJIL), it said in a regulatory filing.

RIL said that RJIL board has approved a scheme of arrangement between the company and certain classes of its creditors including debenture holders for transfer of identified liabilities of up to Rs 1.08 trillion to RIL.

“Rights Issue of Optionally Convertible Preference Shares (‘OCPS’) aggregating up to Rs 1,08,000 crore for the purpose of payment of consideration for transfer of identified liabilities – WOS (wholly owned subsidiary) to subscribe to this issue,” it added.