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Ambani brothers’ deal saves Rs 12,000 cr

Mumbai, Apr 8 () : Ambani brothers uniting for the infrastructure-sharing deal has saved RIL around Rs 12,000 crore.

Mukesh Ambani’s Reliance Industries Limited (RIL) and Anil Ambani-led Reliance Communications (RCom) have turned out to be a bonanza for RIL – it has to pay one time Rs 12,000 crore fee for a network of fibre optic and telecom towers in the country, say sources in RIL.

The deal helped RIL to save substantial roll-out time, apart from saving a huge investment for RIL’s telecom arm Reliance Jio. This would eliminate RIL’s rivals and talks on telecom-tower sharing are going on and an announcement is expected soon.

The deal did not include any exclusivity clause and RCom was free to offer its fibre optic to any third-party.

RIL has earmarked an investment of Rs 13,500 crore on telecom services in the next five years. With the crucial infrastructure secured instantly, launching its 4G by the end of the year would be easy. This fiscal it would spend Rs 2,700 crore in telecom services roll-out.

Reliance Jio might go into the voice market, and it would be a further negative to RCom, owing to greater competitive intensity. RIL had made an application to telecom ministry to offer voice telephony, which would put the company directly pitted against RCom.

RCom’s high debt would be affecting the company’s ability to face increased competition from RIL, which is preparing to offer free voice telephony as a package with its data service.

In a further consolidation, RIL has deposited more than Rs 800 crore in Reliance Mutual Fund fixed maturity plans (FMPs) and other debt schemes owned by younger sibling, Anil Ambani, sources said.

Reliance Capital Ltd’s financial services arm is Reliance Mutual fund. RIL had invested over Rs 8,700 crore in various mutual fund schemes, including FMPs, but did not include any schemes of Reliance Mutual Fund.

RIL’s investment in Reliance Mutual Fund schemes, which has been made over the last eight months, comes as a clear departure of the oil-to-retail conglomerate’s earlier stance of parking surplus funds in almost all the mutual funds, except in those run by the Anil Ambani-led group.

At the end of financial year ended March 31, 2012, RIL had invested over Rs 8,700 crore in various mutual fund schemes, including FMPs, but they did not include any schemes of Reliance Mutual Fund.

13 schemes of Reliance Mutual Fund had RIL stocks in their respective portfolios.These funds held RIL shares worth Rs 500 crore. RIL is said to have one of the biggest cash balances among all the corporates in the country.

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