RIL arm plans to raise ₹4,000 crore to fund Reliance Jio, group firms

Mumbai: Reliance Industrial Investments Holdings Ltd (RIIHL), the investment arm of Reliance Industries Ltd (RIL), is planning to raise ₹4,000 crore to meet the group’s funding and investment requirements, including for its telecom venture Reliance Jio Infocomm Ltd, two people aware of the development said.

“The funds will be raised through optionally convertible preference shares at a dividend rate of 6%,” said one of the people cited above, requesting anonymity.

RIL did not respond to an email query sent on 5 June.

“RIIHL is RIL’s vehicle to invest in various subsidiaries, give them loan as well as buy stakes in various ventures to strengthen offerings of its telecom arm Reliance Jio. Part of the funds raised could go towards funding more such ventures for Reliance Jio,” said the second person, on the condition of anonymity.

In the past five months, Reliance Industries, along with its subsidiaries, including Reliance Industrial Investments Holdings, has acquired stakes in various ventures—The Indian Film Combine, Eros International, Saavn, Embibe and KareXpert Technologies.

In February, Reliance Industries had acquired a 65% stake in The Indian Film Combine Pvt. Ltd, which is building a drive-in theatre, hotel, retail mall and club on a 12-acre plot at Mumbai’s Bandra-Kurla Complex for 1,105 crore. The deal was struck through Reliance Industrial Investments Holdings.

Reliance Jio Infocomm Ltd, which is planning to set up a subsidiary in Estonia, will also take a loan of 12 crore from Reliance Industrial Investments Holdings.

“Reliance Industries is consistently trying to create new business segments and opportunities. With its investment in The Indian Film Combine, real estate is a new segment that the company is planning to venture into. RIIHL is the investment vehicle for this initiative,” an analyst tracking RIL said on the condition of anonymity.

To strengthen its JioHealthHub app, Reliance Industrial Investments Holdings had last month invested 10 crore in Gurugram-based KareXpert Technologies Pvt. Ltd, an early-stage digital healthcare technology platform.

According to people familiar with the matter, Reliance Industries may invest another 20 crore in KareXpert. JioHelathHub allows users to upload health and medical data to maintain their respective medical profile, upload medical bills and lab reports.

According to Reliance Industries’ 2017-18 annual report, RIIHL has invested in 39 subsidiaries, including Indiawin Sports Pvt. Ltd, Kanhatech Solutions Pvt. Ltd, Naroda Power Pvt. Ltd, Reliance Jio Media Pvt. Ltd and Reliance Payment Solutions Ltd, among others.