Jio Platforms Limited, owned by Reliance Industries, India's largest mobile operator, is preparing for its IPO. According to reports, preparations for the IPO are underway this month, and all internal company preparations have been completed, with foreign investors showing a positive reaction.
The report indicates that Jio's IPO may command a significantly higher premium compared to already listed companies. It is anticipated that the IPO subscription might open from October 21 to 23, while the anchor book is likely to open on October 19. Listing on exchanges could take place before October 28.
According to the Moneycontrol report, the regulatory process with SEBI is almost complete, and all necessary permissions have been obtained. Jio has held meetings with Foreign Institutional Investors (FIIs), who reacted enthusiastically. Furthermore, interest from domestic investors proved even higher than expected. The report also notes that the market situation is being monitored daily. Investors emphasized that market fluctuations should not significantly affect their interest in the shares.
Jio Platforms submitted the Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) back in June. SEBI previously gave its approval on August 28, paving the way for Jio's IPO. This offering will be a completely new issue.
The funds received from the IPO will be used by the company to repay outstanding loans amounting to approximately 27,500 crore rupees. The remaining amount will be allocated to other corporate objectives. However, the valuation of this IPO has not yet been determined. According to the report, the decision on the price will be made next week, taking into account investor reactions and market conditions.
Investors view Jio not merely as a telecommunications operator but as a digital service company with growth potential in mobility, home broadband access, enterprise technologies, and international services. The telecommunications company Jio Platforms, Reliance Jio Infocomm, had 524.4 million customers as of March 31, making it the largest telecommunications company in India by customer base. Of these, 268.5 million are 5G customers, which made it the largest 5G Standalone operator outside of China.
