Info-tech

Reliance Jio transfers fibre, tower units to investment trusts

Rajesh Kurup Mumbai | Updated on April 02, 2019 Published on April 02, 2019

At present, RJio owns and operates about 2.20 lakh towers and fibre assets of close to 3 lakh route km

Move will help firm focus on telecom services, deleverage

Reliance Jio Infocomm (RJio), a wholly-owned subsidiary of Reliance Industries (RIL), has transferred its optical fibre cable (OFC) infrastructure and mobile towers to two infrastructure investment trusts.

The trusts were set up by Reliance Industrial Investments and Holdings Ltd (RIIHL), a wholly-owned subsidiary of RIL, as sponsor.

“This (transfer) will result in significant deleveraging of the consolidated balance sheet of the company as on March 31,” RIL said in a regulatory filing.

RJio had transferred its OFC infrastructure to Jio Digital Fibre Pvt Ltd (JDFPL), and the tower units to Reliance Jio Infratel Pvt Ltd (RJIPL) as of March 31.

Controlling stake

JDFPL has allotted shares worth ₹500 crore to the shareholders of RJio, and RJIPL, shares worth ₹200 crore, it added.

The Digital Fibre Infrastructure Trust bought the controlling 51 per cent stake in JDFPL for ₹262.65 crore.

The Tower Infrastructure Trust also bought a 51 per cent stake in RJIPL, for a sum of ₹109.65 crore.

The trusts had received SEBI approvals earlier.

On March 22, RJio received approvals from the National Company Law Tribunal’s Ahmedabad Bench to hive off its fibre and tower businesses into two separate units.

In December last year, the company got board approvals to carve out the fibre and tower assets into two separate companies, providing flexibility to lease them out later.

Further to the creation of two separate companies, RJio will continue to function as a telecom service provider.

This is to enable the companies to work as separate infrastructure providers.

One company would offer independent tower services, with the other leasing out optical fibre to other telecom players and internet companies.

At present, RJio owns and operates about 2.20 lakh towers and fibre assets of close to 3 lakh route km.

Employees handling the towers and the fibre cable network are likely to be moved to the new firms. The company, however, did not provide a timeline for the completion of the hiving off process.

Published on April 02, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.