Market regulator SEBI has approved initial public offering (IPO) of Jio Platforms, paving the way for what could be India's biggest-ever public issue.
Apart from Jio Platforms. the market regulator gave nod to IPO plans of six other firms including Bharat PET, Sadbhav Futuretech, MK Sons Fine Jewels, Paramotor Digital Technology, Pushp Brand (India) and Paras Healthcare.
Jio Platforms filed draft red herring prospectus with SEBI on June 19. The public offer comprises a fresh Issue of up to 27 crore shares, according to the DRHP.
The issue price for Jio IPO will be determined via book building process. Reliance Industries Ltd. holds 66.43% of paid-up equity share capital of Jio Platforms, while Meta and Google hold 17.71% out of the balance 33.57%.
ALSO READ: Jio Platforms DRHP: Mega IPO To Fund Rs 27,500 Crore Debt Repayment For RJIL
Book running lead managers (BRLMs) for the Jio Platforms IPO include 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.
KFin Technologies is the registrar to the issue and the net proceeds from the issue will be used for two main objectives such as prepayment, in full or in part of certain outstanding borrowings availed by the Material Subsidiary, RJIL; and for general corporate purposes. It plans to use around 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 IPO is the firstpublic 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.
ALSO READ: Bharti Airtel Undervalued? Jio Listing May Have The Answer
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
