More investments in Reliance Jio; all eyes now on Q3FY17

Reliance Industries has forayed into the new telecommunication service Jio and has started offering services from August, 2016. The company is planning to invest Rs 30000 crore more to expand coverage and increase network capacity. Already, it has planned huge capital expenditure of Rs 1.5 lakh crore for the new telecommunication vertical.

After infusing another 30k crore into Jio the total investment will reach Rs 1.9 lakh crore.

Reliance Jio has gathered unprecedented customer response for its services. For the purpose of addressing the anticipated growth in demand for digital services, additional investments are proposed to be made into the network to enhance its coverage and capacity.

Reliance Industries' new investment through an equity offering is targeted at strengthening its balance sheet for growth. The company has decided to make a rights issue of 600 crore, pertaining to 9 per cent non-cumulative optionally convertible preference shares of Rs 10 each for cash. It will also declare its Q3FY17 results on Monday.

As of December 31, Reliance Industries has garnered 72.4 million subscribers. It started offering free 4G service during the trial phase which it continued even after its commercial launch on September 5.