5 days ago
SEBI Clears Jio Platforms IPO, India’s Biggest Listing In Sight
SEBI has allowed Jio Platforms to move forward with plans to sell shares to the public.
This kind of first-time share sale is called an IPO.
Jio plans to create and sell 270 million new shares rather than sell shares owned by existing investors.
The company expects to raise roughly $4 billion, although reports give slightly different estimates for the final amount.
Most of the money would be used to repay loans belonging to its telecom subsidiary, Reliance Jio Infocomm.
The IPO could become India’s biggest stock-market listing, surpassing Hyundai Motor India’s 2024 offering.
Reports also differ on whether Jio could be valued at more than $100 billion or about $137 billion.
Jio Platforms reported higher revenue and profit in the June quarter.
Its services had 533.3 million subscribers, including 285 million 5G subscribers.
SEBI has approved Jio Platforms’ proposed IPO, clearing the way for a potential record Indian listing.
The planned issue comprises 270 million fresh shares, with no offer-for-sale component.
Jio Platforms plans to use up to ₹27,500 crore to prepay borrowings of Reliance Jio Infocomm.
Reports estimate the IPO could raise ₹35,000-37,700 crore, or roughly $3.8-4 billion, with valuation estimates ranging from over $100 billion to about $137 billion.
Jio Platforms reported June-quarter profit of ₹7,764 crore and 533.3 million subscribers, including 285 million 5G users.
- Who
- Jio Platforms, led by managing director Akash Ambani, with Reliance Industries as its largest shareholder.
- What
- The Securities and Exchange Board of India approved Jio Platforms’ proposed IPO of 270 million fresh shares.
- Where
- Jio Platforms plans to list on Indian stock exchanges.
- When
- The regulator issued its observations on August 28, according to one report; other reports describe the announcement as occurring on Friday, after the June 19 filing.
- Why
- The company intends to use up to ₹27,500 crore to prepay Reliance Jio Infocomm borrowings, with the remainder for general corporate purposes.
Key facts
- Planned issue
- 270 million fresh equity shares, representing about 2.9%-2.93% of post-issue equity
- Expected fundraising
- Reports estimate ₹35,000-37,700 crore, or approximately $3.8-4 billion
- Debt repayment
- Up to ₹27,500 crore for prepaying borrowings of Reliance Jio Infocomm
- Offer structure
- Entirely a fresh issue, with no offer-for-sale component
- Ownership
- Reliance Industries holds 66.43%; Meta Platforms holds 9.98%; Google holds 7.73%
- June-quarter profit
- ₹7,764 crore, up 9.2% year over year
- Subscriber base
- 533.3 million subscribers, including 285 million 5G subscribers, at the end of June
Quotes
A person aware of the developments
An unnamed person familiar with developments regarding Jio Platforms’ IPO
“The company can now formally begin marketing the offer, with management directly getting involved. Initial conversations have indicated strong demand from global investors, including sovereign and pension funds.”
livemint.com
Sources
Jio Platforms gets Sebi nod for ₹35,000 crore IPO, India’s biggest potential listing
Jio Platforms IPO gets SEBI nod: Rs 27,500 crore debt repayment plan, $100 billion valuation in focus
Jio Platforms gets Sebi nod to launch country's biggest-ever IPO - Telegraph India
Jio Platforms IPO gets SEBI approval, mega listing moves a step closer
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