2 days ago
Jio Platforms IPO Clearance Could Revalue Reliance Industries Stake
Jio Platforms, the company behind Reliance’s telecom and digital businesses, has received an important regulatory clearance for an IPO.
An IPO allows a company to sell shares to the public for the first time.
The proposed sale could raise about Rs 37,700 crore.
It may become the largest IPO in India if completed at that size.
Reliance Industries owns about two-thirds of Jio Platforms.
Because of this, the IPO could show investors how much Reliance’s Jio business is worth.
Most of the money raised would be used to repay debt.
The final price, dates and valuation have not yet been announced.
SEBI issued final observations on Jio Platforms’ proposed IPO on August 28.
The issue may raise about Rs 37,700 crore, potentially making it India’s largest IPO.
The offering could include up to 27 crore fresh shares, representing about 2.9% of post-issue equity.
Reliance Industries owns approximately 66.43% of Jio Platforms, with no offer-for-sale component planned.
Jio Platforms plans to use about Rs 27,500 crore of proceeds to repay or prepay Reliance Jio Infocomm borrowings.
- Who
- Jio Platforms, Reliance Industries, the Securities and Exchange Board of India, and prospective public investors.
- What
- SEBI issued final observations for Jio Platforms’ proposed IPO of up to 27 crore fresh equity shares.
- Where
- India.
- When
- SEBI issued the final observations on August 28; the IPO price band and listing schedule are yet to be announced.
- Why
- The IPO is intended to raise funds, including about Rs 27,500 crore for repaying or prepaying Reliance Jio Infocomm borrowings, while giving Jio Platforms a separately traded market valuation.
Key facts
- Potential issue size
- About Rs 37,700 crore, or approximately $3.8 billion
- Proposed fresh shares
- Up to 27 crore shares
- Post-issue share proportion
- Approximately 2.9% of Jio Platforms’ post-issue equity base
- Reliance Industries’ stake
- About 66.43% of Jio Platforms
- Expected valuation
- Around $137 billion, subject to the final issue price
- Debt repayment allocation
- About Rs 27,500 crore for Reliance Jio Infocomm borrowings
- Other shareholders
- Meta and Google together hold about 17.7%
Sources
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