Jio plans India's biggest IPO at ₹37,700cr
What's the story
Jio Platforms, the Reliance Group-owned telecom giant, is gearing up for India's biggest initial public offering (IPO) yet. The company plans to raise around $4 billion (nearly ₹37,700 crore) through the issue. The IPO will reportedly open for subscription on October 21 and close on October 23. Shares are likely to be allotted by October 26 and get listed on exchanges by October 28.
Pricing details
Price band and other details
The Jio Platforms IPO is likely to be priced between ₹1,150 and ₹1,220 per share. The company plans to issue up to 270 million new equity shares through this offering.
This would represent about 2.9% of its post-issue equity capital.
Notably, this would be the first public offering by Reliance Industries in nearly two decades since Reliance Petroleum's listing in 2006.
Fund allocation
Proceeds to be used for prepaying borrowings
A part of the money raised through this IPO will be used to prepay up to ₹27,500 crore worth of borrowings at Reliance Jio Infocomm Ltd (RJIL), Jio Platform's operating subsidiary.
The rest will be used for general corporate purposes.
Notably, institutional and other large investors own nearly 30.9% of Jio Platforms.