Reliance Industries Ltd has announced that its newly created subsidiary for digital services will be called Jio Platforms Limited.
In October, RIL said it has set up a wholly-owned subsidiary for its digital initiatives, with a total capital infusion of ₹1.73-lakh crore.
Under this arrangement, ₹1,08,000 crore of RJio’s liabilities will be transferred to RIL. The new company will house all of RIL’s digital entities including RJio and other technology-based initiatives in education, healthcare and agriculture services.
Reliance Industries' move to put all its digital initiatives under a new wholly-owned subsidiary is aimed at monetising Reliance Jio through an initial open offer. The telecom business needs further capital as the ecosystem moves to 5G and RIL is ensuring that it has enough power to raise funds whenever required.
RIL has already demerged the telecom infrastructure including tower and fibre into a separate company, which has been monetised through a deal with private equity firm -- Brookfield. Post this demerger, RJIL has become asset light having a balance sheet size of ₹2,37,000 crore.
Now, by putting all the digital entities under a new company, RIL is readying the services arm for a possible monetisation.
Read | How RIL's rejig of digital entities will help Jio and impact Airtel