- Jio Platforms filed draft red herring prospectus with SEBI for its IPO on Friday
- The IPO will issue up to 27 crore fresh shares, with price set by book building
- Reliance Industries holds 66.43% in Jio, Meta and Google jointly hold 17.71%
Jio Platforms Ltd. has filed its official draft red herring prospectus with the securities and exchange board of India on Friday. (SEBI). The public offer will comprise a fresh Issue of up to 27 crore shares, according to the DRHP.
The filing comes shortly after Jio Chairman Mukesh Ambani announced that the draft IPO papers for Jio Platforms will be filed with the capital markets regulator in the annual general meeting earlier today.
The issue price for Jio IPO to be determined via book building process, added RIL. Reliance Industries Ltd. holds 66.43% of paid-up equity share capital of Jio Platforms Ltd. (JPL). Meta and Google hold 17.71% out of the balance 33.57%.
Some of the book Running Lead Managers (BRLMs) for the Jio Platforms IPO include big names like Morgan Stanley India Company Private Ltd., BofA Securities India Limited, Axis Capital Ltd., Goldman Sachs (India) Securities Pvt. Ltd., HDFC Bank Ltd., HSBC Securities, J.P. Morgan India Pvt. Ltd., and SBI Capital Markets Ltd.
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KFin Technologies Ltd. is the registrar to the issue and the net proceeds from the issue will be used for two main objectives, namely: prepayment, in full or in part of certain outstanding borrowings availed by the Material Subsidiary, RJIL; and for general corporate purposes.
The company plans to use up to Rs 27,500 crore of the net proceeds to prepay or repay, in full or in part, outstanding borrowings availed by its material subsidiary, Reliance Jio Infocomm.
Jio's IPO would be the first by a major unit of billionaire Ambani's flagship conglomerate in nearly twenty years. The offering had been in the spotlight after the government approved a change in listing requirements, now allowing large issuers to dilute as little as 2.5% of their equity. However, the company has chosen to raise funds purely via issuing fresh shares.
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