Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL), India's most valued firm, plans to raise about Rs 40,000 crore by monetising its fibre optic assets through an Infrastructure Investment Trust (InvIT) structure.
Digital Fibre Infrastructure Trust (DFIT), a trust that holds all the fibre assets of RIL, will raise a total of nearly Rs 39,700 crore, out of which Rs 14,700 will be raised by making initial offer of its units to investors while rest will be raised via debt, as per the filing to the Securities and Exchange Board of India (Sebi).
DFIT will raise Rs 25,000 crore through debt that will be used to pare debt of the fibre optic arm. The fibre optic unit, formerly a part of Reliance Jio, has a debt of Rs 87,296 crore, including suppliers' credit.
As per the filing, the trust will issue fund proceeds for the purpose of refinancing or prepayment of its existing indebtedness.
DFIT, which owns 51 per cent of an InvIT in which RIL holds 48.44 per cent stake, will issue 147.06 crore units, at a price of Rs 100 a piece, to investors via a private placement, according to the prospectus filed with the Sebi.
The trust will not list the units on stock exchanges.
Reliance Industrial Investments & Holdings (RIIHL), the vehicle to invest in various subsidiaries of RIL, will be allotted 15 per cent of the units on a post-issue basis with locked in period of three years.
Earlier, Reliance had raised fund for Jio's telecom tower assets and Reliance Gas Pipelines through the same route. Canadian asset manager Brookfield had purchased stakes in both telecom tower and gas pipeline assets of RIL through InvIT.
By Chitranjan Kumar