Mukesh Ambani-led Reliance Industries Limited (RIL) is expected to announce on Friday a $1 billion investment from Abu Dhabi Investment Authority and Saudi Arabia's Public Investment Fund (PIF) in Jio's fibre network. RIL is scheduled to announce its earnings for the July-September quarter of FY21 later today.
The two sovereign wealth funds are expected to invest nearly $512 million each to take over a total 51 per cent in the infrastructure investment trust (InvIT) - Digital Fibre Infrastructure Trust (DFIT) - formed by RIL, The Economic Times reported citing unidentified sources. The funds have already invested $2.2 billion in Jio. Law firm Shardul Amarchand Mangaldas & Co advised PIF on the investment.
As of March 31, 2020, Jio Digital Fibre operates optic fibre cable network of nearly 17.37 million fibre pairs per kilometre (FPKM) across the country.
Ambani had recently said that in order to further extend the company's global leadership in connectivity, Jio is now rolling out a high-speed, low-latency optical fibre network to more than 50 million homes and premises. Also, Jio is preparing for rolling out 5G services across India. Ambani said Jio Platforms has built significant capabilities in areas like cloud computing, big data analytics, AI and machine learning, blockchain, AR or VR and IoT.
Meanwhile, RIL may report up to 34 per cent year-on-year drop in September quarter, according to market analysts. On a QoQ basis, the company may log recovery even though the effects of the COVID-19 pandemic are still visible. Reliance's take on the recent legal battle between Amazon India and Future Group will also be watched keenly by market analysts.
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