Mumbai: Reliance Industries Friday said that it will set up a wholly-owned subsidiary for its digital platform initiatives with an investment of Rs 1.08 lakh crore. Accordingly, the company’s move will lead to the creation of the largest digital services platform company in India.
RIL’s digital platforms include the categories MyJio, JioTV, JioCinema, JioNews and JioSaavn. The company said in a statement that the move will ensure that monetisation opportunities accrue to the shareholders efficiently.
“There is no impact in the value pre and post reorganisation for any shareholder; There is no impact on the consolidated debt of RIL,” the RIL statement said. The company further said that the move will not impact RIL’s standalone credit profile given its robust cash flows and conservative leverage.
RIL’s Chairman and Managing Director Mukesh Ambani said: “This new company will be a truly transformational and disruptive digital services platform. It will bring together India’s No.1 connectivity platform, leading digital app ecosystem and world’s best tech capabilities globally, to create a truly Digital Society for each Indian. Jio has been heralding the digital services revolution in India and will continue to do so in the years to come.
“Given the reach and scale of our digital ecosystem, we have received strong interest from potential strategic partners. We will induct the right partners in our platform company, creating and unlocking meaningful value for RIL shareholders.”
