Reliance's Jio Platforms Files Draft Papers for $4 Billion IPO

Jio Platforms Ltd, the digital services arm of Reliance Industries, on Friday, June 19, filed draft papers for an initial public offering that is being billed as the largest ever, with a potential fundraise estimated at around USD 4 billion (about Rs 37,700 crore). Jio Platforms will offer up to 27 crore fresh shares, according to the draft red herring prospectus (DRHP). This would amount to 2.9 per cent of the total equity base post issue. “The net proceeds of the issue are proposed to be utilised in …prepayment, in full or in part, of certain outstanding borrowings availed by the material subsidiary, namely, RJIL…and general corporate purposes,” the draft paper said. Sources said the company expects to raise around Rs 37,700 crore, making it the country’s biggest-ever IPO. The estimated fundraise is expected to value Jio Platforms at around USD 137 billion. IPO proceeds will be used for repayment/prepayment of outstanding borrowings of Rs 27,500 crore and general corporate purposes, according to a source. Jio Platforms has previously attracted some of the world’s largest technology and private equity investors. In 2020, Jio Platforms raised Rs 43,574 crore from Meta, the promoter of Facebook, for a 9.99 per cent stake, and Rs 33,737 crore from Google for a 7.73 per cent stake. In addition, Jio Platforms raised approximately Rs 74,745 crore for around a 15.2 per cent stake from a marquee group of global financial sponsors, sovereign investors and strategic investors, including Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, PIF, Intel Capital and Qualcomm Ventures. Reliance Industries currently owns 66.43 per cent stake in Jio Platforms, while Meta holds 9.99 per cent, acquired in 2020 through a USD 5.7 billion investment. The IPO will be the first public offer from the group since 2008 and the first-ever for a consumer-focused company within the conglomerate.