Jio Platforms to begin IPO roadshow next week
What's the story
Jio Platforms, the digital services subsidiary of Reliance Industries, will begin marketing for its proposed initial public offering (IPO) next week, according to Mint. The company hopes to raise over ₹30,000 crore through this move. The outreach campaign will kick off after the company's first-quarter earnings announcement today and ahead of formal domestic and global roadshows planned in the coming months.
Market potential
Jio Platforms filed DRHP on June 19
Jio Platforms filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 19.
This was the first step toward what could be India's largest-ever IPO, with an estimated target of ₹32,000-35,000 crore.
The company's advisors are waiting for the latest quarterly financials before finalizing preliminary marketing materials for investors.
Investor engagement
Soft-marketing phase with select large investors next week
After announcing its earnings, Jio Platforms plans to start a soft-marketing phase with select large investors next week. This will help gage market appetite before formal roadshows begin.
For offers of this scale, the company's underwriters usually start informal meetings with potential investors well in advance of official roadshows.
The firm has appointed Kotak Mahindra Capital Co., Morgan Stanley India Co., and BofA Securities India Ltd among others as book-running lead managers for the issue.
Fund utilization
Jio Platforms plans to use raised IPO funds for prepayment
Jio Platforms plans to use up to ₹27,500 crore from the raised IPO funds to prepay certain borrowings availed by its material subsidiary, Reliance Jio Infocomm.
Analysts at Morgan Stanley and Citi Research have pegged the company's valuation at around $133 billion.
This suggests a 13 times multiple on its estimated 2026-27 enterprise value against earnings before interest, taxes, depreciation and amortization (EBITDA).