Jio Platforms had submitted draft papers for an IPO consisting entirely of a fresh issue of up to 27 crore equity shares, with no offer-for-sale (OFS) component. The company will likely raise around Rs 35,000 crore through the public issue, which could make it the largest IPO in the history of the Indian stock market.
As part of the standard review process, Sebi often raises queries and seeks further information from companies before issuing its final observation. These observations are necessary for a company to move ahead with its public listing plans.
Unlike several large IPOs in recent years, where existing investors sold part of their holdings, Jio’s proposed issue is entirely fresh. This means that funds collected will go directly to the company and not to the existing shareholders.
According to the prospectus, Jio’s aim is to use Rs 27,500 crore that will be raised from IPO proceeds to reduce its debt burden through repayment or prepayment of borrowings. The remaining funds will be utilised towards expanding its network infrastructure, strengthening AI capabilities, investing in digital services, and meeting other corporate requirements.
Jio Platforms has investment backing from private equity giants, including Google, Meta, KKR, Silver Lake, Vista Equity Partners, General Atlantic, Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund. Reliance Industries currently holds nearly 67% stake in the company.
The IPO is also expected to provide investors with a clearer valuation of Jio’s telecom and digital businesses, which are currently part of Reliance Industries’ broader conglomerate structure.
