Naved Alam
MUMBAI: Reliance Jio Platforms has reportedly filed its red herring prospectus (RHP), with its initial public offering (IPO) scheduled to open on October 21 and close on October 23, according to media reports.
The proposed offering could become India’s largest IPO, surpassing Hyundai Motor India’s record-setting public issue in 2024, subject to the final offer details and valuation.
According to reports, the issue comprises a fresh offering of 27 crore shares, with no offer-for-sale component by existing shareholders. The proceeds would go to Jio Platforms.
Shareholder reservation
Reports indicate that shares worth up to ₹2,500 crore may be reserved for eligible Reliance Industries shareholders, while employees could have a separate reservation worth up to ₹500 crore. The reported record date for shareholder eligibility is October 14.
The reported price band is ₹1,065-₹1,119 per share, implying a valuation of around ₹10.3 lakh crore, or $106 billion. The final price band and valuation should be confirmed through the company’s official offer documents.
Use of proceeds
According to the reported draft documents, Jio Platforms plans to use up to ₹27,500 crore of the net proceeds to repay or prepay borrowings, primarily associated with Reliance Jio Infocomm. The remaining funds would be allocated to general corporate purposes.
Jio Platforms houses Reliance Industries’ telecom and digital businesses, including mobile services, broadband, cloud, entertainment, enterprise technology and artificial intelligence. The company reportedly had around 52.4 crore subscribers as of March.
The IPO could provide investors with a separate market valuation for Jio’s digital and telecom operations. However, its impact on Reliance Industries shares will depend on the final valuation, investor demand and listing performance.
Disclaimer: Details are based on media reports and subject to official confirmation. This article is for informational purposes only and is not investment advice.
