Jio Platforms, the telecom and digital arm of Reliance Industries in Mumbai, is reported to be preparing to open its initial public offering on October 21, according to Reuters reports carried by Outlook Money. Subscription would close on October 23, with shares expected to list on the BSE and NSE on October 28.
The offer is reported at $3.9 billion at current exchange rates, which Groww noted would make it the largest in India. It is a fresh issue of up to 270 million new shares, 2.9% of the company after the offering, with no offer for sale by existing owners. India’s market regulator gave its observations on the draft papers on August 28.
Who owns it today
Reliance Industries holds 66.43% of Jio Platforms. Two American companies are among the largest outside shareholders: Meta, through its affiliate Jaadhu Holdings, holds 9.98%, and Google holds 7.73%. These investments were made during the pandemic.
What the money is for
Under the draft papers, up to $2.8 billion at current exchange rates would go to repaying borrowings of Reliance Jio Infocomm, the operating subsidiary, with the rest for general corporate purposes. Jio Infocomm has 506 million mobile customers and 158 million fixed-line subscribers, according to Angel One.
The final price range will come with the company’s final offer document, which is expected after October 12.
The Bombay Stock Exchange building in Mumbai. Illustrative photo. (Photo: Niyantha Shekhar, CC BY 2.0, via Wikimedia Commons)
