Mumbai: Jio Platforms, the digital services arm of Reliance Industries, has filed draft papers for its much-awaited initial public offering (IPO).
The proposed IPO is expected to become the largest public issue in India’s history, with an estimated fundraise of around USD 4 billion, or nearly Rs 37,700 crore.
This will be Reliance Group’s first public offer since 2008.
Fresh Issue of 27 Crore Shares
According to the draft red herring prospectus (DRHP), Jio Platforms plans to issue up to 27 crore fresh equity shares.
This will account for around 2.9 percent of the company’s total equity base after the issue.
Market sources estimate the IPO could value Jio Platforms at nearly USD 137 billion, reflecting strong investor confidence in the company’s digital growth story.
Funds to Reduce Debt
The company said a large portion of the IPO proceeds will be used to repay existing borrowings.
Around Rs 27,500 crore will go towards repayment or prepayment of debt raised by Reliance Jio Infocomm Limited (RJIL).
The remaining funds will be used for general corporate purposes.
Lower debt could strengthen the company’s balance sheet and improve its future growth potential.
Strong Backing from Global Investors
Jio Platforms has attracted several global technology and investment giants over the years.
In 2020, Meta invested Rs 43,574 crore for a 9.99 percent stake, while Google invested Rs 33,737 crore for a 7.73 percent stake.
Other major investors include Silver Lake, KKR, Mubadala, ADIA, TPG, Intel Capital and Qualcomm Ventures.
Currently, Reliance Industries holds a 66.43 percent stake in Jio Platforms.
The IPO marks a major milestone in Jio’s journey as it prepares for its next phase of expansion.
(With PTI Inputs)
