Now Reading: Sebi clears Jio Platforms Rs 35,000 crore IPO, India’s biggest
-
01
Sebi clears Jio Platforms Rs 35,000 crore IPO, India’s biggest
Jio Platforms Ltd has received Sebi approval for its initial public offering, clearing the way for what could be India's largest stock listing. The Securities and Exchange Board of India issued its…
Jio Platforms Ltd has received Sebi approval for its initial public offering, clearing the way for what could be India's largest stock listing. The Securities and Exchange Board of India issued its observation letter on the company's draft prospectus on Friday, Reliance Industries Ltd informed stock exchanges. Jio Platforms plans to raise Rs 35,000 crore through a fresh issue of shares, with no offer-for-sale component.
The digital services arm of Reliance Industries plans to list within the next couple of months. The IPO would surpass previous records set by Hyundai Motor India Ltd and Life Insurance Corp of India. Jio Platforms, led by Akash Ambani, will use up to Rs 27,500 crore of the proceeds to prepay borrowings of its subsidiary Reliance Jio Infocomm Ltd. Kotak Mahindra Capital, Morgan Stanley, BofA Securities, Axis Capital, BNP Paribas, Citigroup and Goldman Sachs are managing the offer.
Indian Opinion Analysis
Jio Platforms enters the public market at a time when India's telecom sector is consolidating around three private players. The company's ability to command a valuation of about $133 billion reflects investor confidence in its digital ecosystem spanning telecom, payments and cloud services. The Rs 35,000 crore target exceeds the Rs 21,000 crore LIC raised in 2022. The entire proceeds being fresh issue means existing shareholders including Meta and Google are not selling down. The next milestone is the price band announcement, likely in the coming weeks, which will test demand at the valuation Morgan Stanley and Citi have assigned.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
