Jio Platforms IPO may launch on October 21
What's the story
Jio Platforms, the digital arm of Reliance Industries, is gearing up for its much-anticipated initial public offering (IPO). The company plans to launch the IPO on October 21, with an estimated issue size of $3.8 billion, CNBC TV-18 reported. The offer will remain open until October 23 and aims for a stock exchange listing by October 28.
Investor feedback
Positive response from investors
Jio Platforms has received a positive response from foreign institutional investors (FIIs) and domestic investors in recent meetings, PTI reported.
The company has also completed international roadshows and is finalizing its public offer documents.
These roadshows were led by Akash Ambani, Managing Director of Jio Platforms and Chairman of Reliance Jio, along with Isha Ambani, Executive Director of Reliance Retail Ventures Limited.
Market impact
India's largest IPO
The upcoming IPO is being touted as India's largest.
The issue will consist entirely of fresh shares, meaning the money raised will go directly to the company rather than existing shareholders selling their holdings.
A significant portion of the proceeds is expected to be used for debt repayment.
Jio Platforms filed its draft red herring prospectus (DRHP) with SEBI in June and received final observations on August 28, allowing it to proceed with the offering.
Fund allocation
Funds to be used for debt repayment
Jio Platforms intends to use the funds raised from its IPO mainly to repay or prepay, in full or part, around ₹27,500 crore of Reliance Jio Infocomm's outstanding borrowings.
Its telecom subsidiary Reliance Jio Infocomm commands a 32.89% share of the fixed-line connections market with 157.9 million subscribers and a 39.29% share of mobile connections with 506 million customers.