Reliance Jio's draft red herring prospectus (DRHP), which was filed on Friday, gave an insight into how India's largest digital consumer brand will use the proceeds from the public offering, which is expected to raise around $3 billion. The company plans to use Rs 27,500 crore from the fresh issue to prepay debt at Reliance Jio Infocomm (RJIL), its key telecom subsidiary. The remaining proceeds will be used for general corporate purposes, according to the DRHP filed with Sebi.
The move indicates that Reliance Industries Chairman Mukesh Ambani's strategy is to strengthen Jio's balance sheet before the next phase of growth in 6G, artificial intelligence, broadband and digital services.
