Jio Platforms, backed by Reliance Industries, is preparing to launch India's largest-ever initial public offering (IPO) next week, aiming to raise approximately ₹30,213 crore through a fresh issue of up to 27 crore equity shares. Meta Platforms and Google, which hold 10% and 7.73% stakes respectively, are not selling shares in the IPO but stand to gain nearly ₹1 lakh crore combined in paper gains, according to livemint.com.
The IPO price band is set at ₹1,119 per share at the upper end, which would represent a 129% return on investments made by Meta and Google in 2020. The issue is a fresh equity issuance, meaning no existing shareholders are selling their stakes. This structure allows Jio Platforms to raise capital directly, enhancing its financial position without diluting existing investors’ holdings, as explained by Kotak Mahindra Bank founder Uday Kotak on livemint.com.
This IPO is significant in the Indian market as it will elevate Reliance Industries Group to become the country’s largest conglomerate by combined market capitalization of its listed companies. The fresh-issue approach contrasts with offer-for-sale methods, where proceeds go to existing shareholders. The scale of this IPO and the involvement of major global tech investors underscore the growing interest in India's digital services sector, per livemint.com.
Jio Platforms’ debut on the stock market is scheduled for next week, with the IPO expected to close after the subscription period. The company’s fresh issue of shares will directly raise ₹30,213 crore, marking a major milestone for Reliance Industries and its digital arm, according to livemint.com.