if you are thinking that Mukesh Ambani is done with the investments in Jio Platforms after making RIL a debt-free, you are highly mistaken. Now India’s richest and world’s fifth-richest person is aiming to attract more investment in JioFiber to make Jio Platforms an asset-lite company, purely focus on digital services and products.
According to Mint, Qatar Investment Authority (QIA) is in talks with Reliance Industries Ltd. to invest to the tune of $2 billion in JioFiber that hold the company’s fibre-optic assets.
Two people familiar with the development have claimed that Reliance has hired Citigroup Global Markets, Moelis and Co. and ICICI Securities Ltd as investment bankers for the proposed deal with QIA.
This is not the first time when Reliance is seeking investment for its telecom infrastructure business. Last year, the company raised ₹25,215 crores ($3.7 billion) from Canada’s Brookfield Asset Management as an infrastructure investment trust (InvIT) that holds the company’s tower business.
Last year, Reliance segregated its Fibre network and tower business from telecom subsidiary Reliance Jio Infocomm. The two new entities Jio Digital Fibre Pvt Ltd and Reliance Jio Infratel Pvt Ltd were setup to accelerate the growth of its infrastructure business as well as digital services arm.
Jio plans to retain 15% of tower business, while making the rest 85% available to the investors.
The monetization of the Fibre network business move is being seen as a well-calculated move by Mukesh Ambani to position Jio Platforms as a company purely focused on offering digital services and products. It will also help the company to reduce the cost and provide affordable 5G services to users in India – the market largely driven by price sensitivity. With fresh investment in JioFiber, the company is expected to stay ahead with all the competitors in the market and fuel its plans to offer Jio 5G services as a global offering.
Mukesh Ambani led Jio platforms has recently attracted over $20 billion in investments in less than 3 months from 13 global investors including tech Facebook, Google, and Qualcomm – the behemoths of the tech industry.
Currently covering 700,000 Kms in India, the company has set the target of 1.1 million Kms with its fiber network in India.