Jio Platforms IPO Gets Sebi Approval, Set to Become India's Biggest IPO

Jio Platforms has received approval from market regulator Sebi to proceed with an initial public offering that could raise around Rs 37,700 crore, potentially making it India's largest-ever IPO.

Sebi issued its final observations on August 28, clearing the way for the IPO after Jio Platforms filed its draft papers in June. The company plans to issue up to 27 crore fresh equity shares, representing around 2.9% of its post-issue equity base.

At an estimated issue size of Rs 37,700 crore, or about $3.8 billion, the offering would surpass Hyundai Motor India's $3.3 billion-equivalent IPO in 2024. It would also be larger than the proposed Rs 30,000-crore IPO of the National Stock Exchange.

The IPO could value Jio Platforms at approximately $137 billion, according to people familiar with the matter.

WHERE WILL JIO IPO MONEY GO?

A major portion of the IPO proceeds will be used to repay or prepay around Rs 27,500 crore of borrowings of Reliance Jio Infocomm, Jio Platforms' key subsidiary. The remaining funds will be used for general corporate purposes.

Jio Platforms houses Reliance Industries' digital businesses, including its telecommunications operations.

Reliance Jio Infocomm had more than 53.3 crore subscribers as of June-end, making it the world's second-largest mobile operator by subscriber count, according to company data. The business has also expanded into cloud computing, artificial intelligence and enterprise network services.

JIO'S GLOBAL INVESTOR BASE

Jio Platforms attracted billions of rupees from global technology and financial investors during its 2020 fundraising.

Meta invested Rs 43,574 crore for a 9.99% stake, while Google invested Rs 33,737 crore for a 7.73% holding.

Other investors, including Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, Abu Dhabi Investment Authority, TPG, L Catterton, the Public Investment Fund, Intel Capital and Qualcomm Ventures, collectively invested around Rs 74,745 crore for roughly 15.2% of the company.

Reliance Industries currently owns about 66.4% of Jio Platforms, while Meta and Google together hold approximately 17.7%, according to the draft prospectus.

FIRST RELIANCE GROUP IPO SINCE 2008

The Jio Platforms IPO would mark the first public offering from the Reliance group since 2008 and the conglomerate's first IPO involving a consumer-focused business.

Jio Platforms is chaired by Mukesh Ambani, while his eldest son Akash Ambani serves as managing director. Akash also chairs Reliance Jio Infocomm.

The proposed listing comes amid strong activity in India's primary market, with more than two dozen IPOs announced or launched since July 1. If completed at the estimated size, Jio's offering would set a new record for India's largest IPO.