Reliance Jio has deposited Rs 37.20 billion in a State Bank of India (SBI) escrow account, marking the completion of its acquisition of Reliance Infratel Limited (RITL), the tower business under Reliance Communications currently undergoing insolvency proceedings.
In November 2022, the National Company Law Tribunal (NCLT) in Mumbai had approved RITL’s acquisition by Reliance Project and Property Management Services Limited (RPPMSL), the arm of Jio that looks into the telecom operator’s tower business.
In a filing at the Bombay Stock Exchange, Reliance Industries, the parent company of Jio, informed that RITL has allotted 50,00,000 equity shares of Rs 10 each to RPPMSL, for cash, aggregating Rs 50 million; and 372,00,00,000 zero coupon optionally fully convertible debentures of Rs 10 each, for cash, aggregating Rs 37.20 billion.
Separately, Reliance Communications, in a separate filing to the exchanges noted that the escrow agreement, dated December 22, 2022, has been executed among RITL, representative of lenders – SBI and China Development Bank, RPPMSL, Anish Nanavaty (as authorised signatory) and SBI (as account bank), for purposes of recording the terms governing the escrow account set up in accordance with the November 21, 2022 order.
