InvestorQ : How and why is Mukesh Ambani looking to sell his fiber optic assets through the INVIT route?
Dhwani Mehta made post

How and why is Mukesh Ambani looking to sell his fiber optic assets through the INVIT route?

Answer
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Dilmini Mercia answered.
3 weeks ago


The trust that holds the fibre-optic assets of the Reliance Group is looking to raise Rs.40,000 crore through borrowings and stake sales to investment firms through the Infrastructure Investment Trust route. This is how it could work.

Digital Fibre Infrastructure Trust is looking to raise about Rs.15,000 crore via issue of equity units as well as Rs.25,000 crore through a loan from group companies to reduce existing debts and fund business expansion. This will also include the overseas fibre assets.

Reliance Industries will hold 48.4% stake in Jio Digital Fibre. Reliance is currently offering broadband services across the country through his fibre-optic network. This is a logical and natural extension to their existing telecom and digital offerings.

Reliance has already in the pat sold stakes in a separate investment trust holding the group wireless tower assets to Brookfield Asset Management for Rs.24,800 crore. This could be the next big monetization of its fibre assets.