India’s largest company in terms of market capitalization, Reliance Industries Limited has been minting cash left and right across all its ventures. And RIL’s massive digital behemoth Reliance Jio Platforms has seen over $20Bn invested in so far.
And now Mukesh Ambani-led Reliance is now looking to monetize its fiber assets, ‘JioFiber’ held by Jio Digital Fibre Pvt. Ltd. According to the reports, the Sovereign fund Qatar Investment Authority (QIA) is in advanced talks with Reliance Industries Ltd to invest around $1.5 billion (about ₹11,200 crores).
According to the LiveMint, the sources said that “Fibre network business monetization falls exactly in line with RIL’s original plan to make Jio become an asset-light digital services company and save significantly on costs as the group is gearing up to offer affordable 5G services. It has an immense revenue generation potential,” said one of the two people cited above, requesting anonymity.
According to people who spoke with Mint, Reliance Jio Infocomm will continue as the sponsor of the InvIT and retain a minimum of 15% stake. The remaining 85% would be sold to global investors,
Interestingly JioFiber already has a wide presence across. And it is aggressively reaching Tier II/III cities with high-speed internet at affordable costs. Reports suggested that Jio Digital Fibre has a 700,000km network of fiber-optic cables in India and the company is planning to take that up to 1.1 Million km very soon.
Also, for the Qatar Investment Authority, the timing couldn’t be better as Indian tax authorities recently announced to exempt the tax for sovereign funds investing in India’s infrastructure sector.