Jio Platforms gets Sebi nod for IPO:₹37,700 crore public issue could be India’s biggest

Jio Platforms Ltd, the digital services division of Reliance Industries, has received Sebi approval to float an initial public offering that could raise around $4 billion (approximately ₹37,700 crore), making it potentially the largest IPO in the country. Jio Platforms had filed its draft papers with the market regulator in June for the proposed public issue. According to an update with the market regulator on Friday, Jio Platforms obtained Sebi’s final observations on August 28. Sebi’s observation is a key step in the initial public offering (IPO) process, after which a company can proceed with further preparations for the public issue, subject to applicable regulatory requirements. According to the Draft Red Herring Prospectus (DRHP), Jio Platforms will offer up to 27 crore fresh equity shares. The issue will account for around 2.9% of the company’s total equity base post-issue. The company is expected to raise around ₹37,700 crore through the IPO at a valuation of around $137 billion, making it the largest IPO in the country’s history, sources said. For comparison, the proposed IPO of the National Stock Exchange (NSE) is estimated to be around ₹30,000 crore, according to sources. If Jio Platforms raises the estimated ₹37,700 crore, its issue would therefore be significantly larger. The IPO proceeds are proposed to be used primarily for repayment or prepayment, in full or in part, of certain outstanding borrowings of Jio Platforms material subsidiary, Reliance Jio Infocomm Ltd (RJIL), apart from general corporate purposes. The proposed IPO will be closely watched by investors and the broader market, given Jio Platforms scale and prominent investor base. Jio Platforms has previously attracted some of the world’s largest technology and private equity investors. In 2020, the company raised ₹43,574 crore from Meta, the promoter of Facebook, for a 9.99% stake. Google invested ₹33,737 crore for a 7.73% share. It also raised around ₹74,745 crore for about a 15.2% stake from a group of global financial and strategic investors, including Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, PIF, Intel Capital and Qualcomm Ventures. Reliance Industries currently holds 66.43% of the paid-up equity share capital of Jio Platforms. Meta and Google together hold 17.71%, with the remaining stake held by other investors. The IPO would mark the first public offering from the Reliance group since 2008 and the first-ever IPO of a consumer-focused company within the conglomerate.