RIL expects certain external investors to bring in capital into these trusts which will be further dropped down into two subsidiaries to refinance liabilities as well as pay for part of its investments into these assets, HSBC said."It, however, remains to be seen how much money does Softbank actually put in, what the implied https://www.xtanchor.com/product/mechanical-anchors/chemical-anchor.html chemical anchor equity valuation is and if the e-commerce venture is included in the Jio entity. More importantly, from a stock price perspective, we believe the potential investment would have to be an equity investment in Jio and not in the proposed InviT as that would be a quasi-debt investment.75 lakh route km built and underdevelopment towers into two separate subsidiaries - one for the towers and one for the fiber assets.
This comes on the back of reports of Saudi giant Aramco in discussions to buy a 25 per cent stake in Reliance Industries refining and petrochemical business for USD 10-15 billion."Softbank has long been seen as a potential investor in Jio," JPMorgan said in a research report."In our view, for a meaningful de-leveraging, investors would likely want to see an equity inflow of more than USD 5 billion from a single investor or a combination of investors," JPMorgan said valuing Jio at USD 50 billion."Jio has transferred its 7 lakh route km of fibre and 1."RIL will monetise these investments once external investors bring capital into the InvITs in the coming months."We think deleveraging will remain a key theme, with more asset sales likely," it said.It, however, put implied equity value at USD 25 billion."A potentially smaller equity sale, which although would establish a larger equity value of Jio, would not be seen as a meaningful positive, in our view," it said."As of now, Jio is the carriage and content vehicle, while Reliance Retail is the offline retailer. Reliance Retail was valued at an implied equity value of USD 35 billion.This was a result of the restructuring of the telecom operations (Jio) by transferring control of its key assets - fibre and towers - to two separate infrastructure trusts (InvITs) along with Rs 70,000 crore (USD 10 billion) of external liabilities and part of RILs investments of Rs 36,600 crore (USD 5 billion).7 billion in third quarter.
"For the past 2 years, our conversations with investors have highlighted expectations of Softbank investing in Jio and hence the news flow is not surprising."Overall, we maintain our view that while the earnings environment for the company is deteriorating with downside risks to refining and petchem (petrochemical), stock multiples would keep on moving higher on expectations of potentially large stake sales on higher than current implied equity values for the various businesses," JPMorgan said.Control of these subsidiaries is transferred to two separate infrastructure trusts (InvIT) which will be managed by an independent party. "Strong earnings momentum, emerging signs of a strong outlook for both the telecom and retail businesses which extend beyond this decade..In a separate report, HSBC Global Research said RILs consolidated adjusted net debt has declined to USD 33.
It remains to be seen where the eventual commerce would sit - Jio or Retail, and whether it would be part of any Jio equity stake.It said investors will initially likely regard this restructuring as mainly a financing transaction to offload debt from RILs balance sheet, considering there is limited clarity on payments by Jio as well as any revenue upside from other customers.It was reported that SoftBanks Vision fund is currently undertaking due diligence to buy a stake in Jio Infocomm, which in September 2016 launched pure play fourth-generation or 4G technology-based telecom services and within a span of two years have become Indias third largest telecom company with highest monthly subscriber additions.
In addition, RIL expects a business case beyond Jios usage as other telecom operators and customers can also lease these assets and can participate in any such upside after the trusts service liabilities of Rs 1,07,000 crore," HSBC said.Both Reliance and SoftBank spokespersons declined to comment on the matter. Jio as an anchor tenant will pay rentals for using these assets.2 billion in the fourth quarter of 2018-19 that ended on March 31, from USD 42.New Delhi: Japans Softbank is reportedly looking to make a USD 2-3 billion investment in Indias fastest-growing telecom firm Reliance Jio as billionaire Mukesh Ambani looks to deleverage business by selling stakes. "We also need to see what the potential stake sale would involve.
This comes on the back of reports of Saudi giant Aramco in discussions to buy a 25 per cent stake in Reliance Industries refining and petrochemical business for USD 10-15 billion."Softbank has long been seen as a potential investor in Jio," JPMorgan said in a research report."In our view, for a meaningful de-leveraging, investors would likely want to see an equity inflow of more than USD 5 billion from a single investor or a combination of investors," JPMorgan said valuing Jio at USD 50 billion."Jio has transferred its 7 lakh route km of fibre and 1."RIL will monetise these investments once external investors bring capital into the InvITs in the coming months."We think deleveraging will remain a key theme, with more asset sales likely," it said.It, however, put implied equity value at USD 25 billion."A potentially smaller equity sale, which although would establish a larger equity value of Jio, would not be seen as a meaningful positive, in our view," it said."As of now, Jio is the carriage and content vehicle, while Reliance Retail is the offline retailer. Reliance Retail was valued at an implied equity value of USD 35 billion.This was a result of the restructuring of the telecom operations (Jio) by transferring control of its key assets - fibre and towers - to two separate infrastructure trusts (InvITs) along with Rs 70,000 crore (USD 10 billion) of external liabilities and part of RILs investments of Rs 36,600 crore (USD 5 billion).7 billion in third quarter.
"For the past 2 years, our conversations with investors have highlighted expectations of Softbank investing in Jio and hence the news flow is not surprising."Overall, we maintain our view that while the earnings environment for the company is deteriorating with downside risks to refining and petchem (petrochemical), stock multiples would keep on moving higher on expectations of potentially large stake sales on higher than current implied equity values for the various businesses," JPMorgan said.Control of these subsidiaries is transferred to two separate infrastructure trusts (InvIT) which will be managed by an independent party. "Strong earnings momentum, emerging signs of a strong outlook for both the telecom and retail businesses which extend beyond this decade..In a separate report, HSBC Global Research said RILs consolidated adjusted net debt has declined to USD 33.
It remains to be seen where the eventual commerce would sit - Jio or Retail, and whether it would be part of any Jio equity stake.It said investors will initially likely regard this restructuring as mainly a financing transaction to offload debt from RILs balance sheet, considering there is limited clarity on payments by Jio as well as any revenue upside from other customers.It was reported that SoftBanks Vision fund is currently undertaking due diligence to buy a stake in Jio Infocomm, which in September 2016 launched pure play fourth-generation or 4G technology-based telecom services and within a span of two years have become Indias third largest telecom company with highest monthly subscriber additions.
In addition, RIL expects a business case beyond Jios usage as other telecom operators and customers can also lease these assets and can participate in any such upside after the trusts service liabilities of Rs 1,07,000 crore," HSBC said.Both Reliance and SoftBank spokespersons declined to comment on the matter. Jio as an anchor tenant will pay rentals for using these assets.2 billion in the fourth quarter of 2018-19 that ended on March 31, from USD 42.New Delhi: Japans Softbank is reportedly looking to make a USD 2-3 billion investment in Indias fastest-growing telecom firm Reliance Jio as billionaire Mukesh Ambani looks to deleverage business by selling stakes. "We also need to see what the potential stake sale would involve.
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