Reliance may launch Jio IPO during Navratri-Diwali:Mukesh Ambani will bring India’s largest IPO worth ₹37,800 crore

Reliance Industries’ telecommunications and technology company Jio Platforms Limited is preparing to launch the country’s largest IPO. According to reports, the company plans to launch the issue around Navratri or Diwali. The company will raise approximately ₹37,800 crore through the issue. It will be the country’s largest public issue. Investor sentiment in the market generally remains positive during the festive season of Navratri and Diwali. This year, Navratri will begin on October 11 and continue until October 20, or Dussehra. The company is believed to be able to begin its international roadshows as early as next week. Dhanteras falls on November 6, while Diwali is on November 8. If the Navratri window is missed, the company may launch the issue around Diwali.
Will conduct international and domestic roadshows for 5 weeks Jio Platforms may finalize the IPO dates within the next 1-2 weeks. After this, the company will conduct a 3-week international roadshow for foreign investors. After the overseas trips, the company will hold meetings and presentations with domestic institutional investors and retail investors in India for 2 weeks. Company will issue 270 million new shares in the issue If this IPO is launched at the decided size of ₹378 billion, it will become the largest IPO in the history of the Indian stock market. According to the Draft Red Herring Prospectus (DRHP), the company will issue 270 million new equity shares. This will account for approximately 2.9% of the company’s post-issue share capital.

₹27,500 crore will be used to repay debt A major portion of the funds raised through the IPO will be used to repay the debt of Reliance Jio Infocomm Limited (RJIL). The company will use approximately ₹27,500 crore for loan repayment or prepayment. The remaining issue proceeds will be used for general corporate purposes. Jio Platforms will transfer this money to RJIL through equity, preference shares, debentures or loans. Global tech giants hold a 30.9% stake Several major global investors have invested in Jio Platforms. Currently, large foreign investors hold a total 30.9% stake in the company. Meta/Facebook’s entity Jaadhu Holdings holds a 9.98% stake in the company, while Google International holds 7.73%. Other investors include Saudi Arabia’s Public Investment Fund (PIF), funds associated with Silver Lake, Vista Equity, General Atlantic, KKR, and the Abu Dhabi Investment Authority (ADIA). DRHP filed in June, SEBI approval received in August Jio Platforms had submitted the draft papers (DRHP) for this mega IPO to market regulator SEBI in June this year. Subsequently, on August 28, SEBI approved the public issue. What are DRHP and a roadshow?