Jio's IPO may come on Navratri-Diwali: ₹ 37,800 crore will be the country's biggest public issue, approval received from SEBI

Mumbai49 minutes ago

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Reliance Industries’ telecom and technology company Jio Platforms Limited is preparing to launch the country’s largest IPO. According to reports, the company is planning to launch this issue around Navratri or Diwali.

The company will raise approximately ₹37,800 from this issue. This will be the biggest public issue in the country. The sentiment of investors in the market remains positive during Navratri-Diwali i.e. festive season.

This time Navratri will start from 11th October and will continue till 20th October i.e. Dussehra. It is believed that the company can start international roadshows from next week itself.

Dhanteras is on 6th November and Diwali is on 8th November. If the Navratri window is missed, the company may launch the issue on Diwali.

Will do international-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 visits, the company will hold meetings and presentations with domestic institutional investors and retail investors in India for 2 weeks.

The company will issue 27 crore new shares in the issue.

If this IPO is launched at the fixed size of ₹37,800 crore, 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 27 crore new equity shares. This will represent about 2.9% of the company’s post-issue share capital.

₹27,500 crore will be used to repay the loan

A large part of the funds raised from the IPO will be spent in repaying the debt of Reliance Jio Infocomm Limited (RJIL). The company will use about ₹27,500 crore for loan repayment/prepayment.

The remaining amount of the issue will be used for general corporate needs. Jio Platforms will transfer this money to RJIL through equity, preference shares, debentures or loan.

Global tech giants hold 30.9% stake

Many of the world’s biggest investors have invested in Jio Platforms. Currently, large foreign investors hold a total of 30.9% stake in the company. Jadoo Holdings (Meta/Facebook) holds 9.98% stake and Google International holds 7.73% stake in the company.

Other investors include Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, Vista Equity, General Atlantic, KKR and funds associated with Abu Dhabi Investment Authority (ADIA).

DRHP was filled in June, SEBI approval received in August

Jio Platforms had submitted draft papers (DRHP) for its mega IPO with market regulator SEBI in June this year. After this, on August 28, SEBI had approved this public issue.

What is DRHP and Roadshow?

Draft Red Herring Prospectus i.e. DRHP: This is an initial document, which the company submits to SEBI before launching the IPO. In this, the company gives complete details of its business, promoters, financials and reasons for bringing IPO.
Roadshows: This is the process of the company’s top management meeting large institutional and foreign investors (such as mutual funds, merchant bankers) just before the IPO. In this, the company attracts investors to buy shares by telling them about its future growth plans.