Reliance Industries stock gains after Reliance Jio clears all deferred spectrum liabilities

19 Jan 2022 , 09:51 AM

Reliance Industries Limited backed telecom arm, Reliance Jio announced prepayment of Rs 30,791 cr (including interest accrued thereon) to the Department of Telecom clearing all deferred spectrum liabilities acquired in auctions of the year 2014, 2015, 2016 and to the auction through trading of rights with Bharti Airtel Limited in 2021. The company acquired a spectrum with a frequency of 585.3 MHz in the said auctions.

RIL is currently trading at Rs2,526.85 up by Rs6 or 0.24% from its previous closing of Rs2,520.85 on the BSE. The scrip opened at Rs2,526.30 and has touched a intraday high and low of Rs2,541.65 and Rs2,508.80 respectively.

RJIL has executed its first payment tranche in October 2021 relating to the spectrum acquired in the year 2016. Department of Telecom’s decision to provide telecom providers flexibility for payment on any day has made RJIL prepaid the entire deferred liabilities in the month of January 2022.

These liabilities were due in FY 2022-23 to 2034-35, with accrued interest rates between 9.30% to 10% with an average residual period of 7 years.

As per the company’s estimate, the above prepayments will result in interest savings of around Rs 1200 crore annually, at the prevailing interest rates.

Jio has transformed the Indian digital services space to enable the vision of Digital India for 1.3 billion Indians and pitched India into global leadership in the digital economy. Jio has a world-class all-IP data strong future proof network with the latest 4G LTE Technology, being the only network supporting Voice over LTE technology. Jio has vast plans and can be easily upgraded to support even more data, technologies, and up-gradation to 5G, 6G, and beyond. Jio has revolutionized customers’ voice call experience by making it free across India.