Jio Platform IPO: Preparations for the biggest public issue in the history of the Indian stock market are almost complete. Mukesh Ambani-led company Jio Platforms is about to launch its much-awaited IPO. Through this mega issue, the company raised about 4 billion dollars i.e. Rs. 37,700 crore is working on a plan to raise Rs. This movement will be seen in the primary market during the festive season around Dussehra. According to sources close to the matter, the company may file its red herring prospectus (RHP) after October 12. The price band for this IPO is likely to be fixed at Rs 1,150 to 1,220 per share.

When will you get a chance to bet?

The full timeline of this public issue has been determined. Sources say bids may be opened for anchor investors on October 19. Immediately thereafter the issue will open for subscription to general investors on October 21. Retail investors will have an opportunity to block money in this issue till October 23.

After completion of the bidding process, the decision on allotment of shares is expected to be made on October 26. If all goes according to plan, the company’s shares will be listed on the local stock exchange on October 28. The company is trying its best to complete all the necessary formalities related to the IPO before October 30. However, a source close to the matter said, the company is fast-tracking the entire process including October. Emails sent to the company and leading bankers in this regard had received a reply till the time of writing. Let us tell you that Jio Platforms filed draft papers in June, which got the green signal from market regulator Sebi on August 28.

Beating Hyundai to become the largest IPO

This IPO of the Jio platform is all set to break all the old records of the Indian stock market. In this issue 2024, Hyundai Motor India’s Rs. 27,859 crore IPO, the country’s largest successful IPO ever. Apart from this, the National Stock Exchange (NSE) also recently added Rs. 22,562 crore issue was launched, which became the second largest issue in the country. This proposed public issue of Jio will be much ahead of these two.

According to the Draft Red Herring Prospectus (DRHP), Jio Platforms is proposing to issue 27 crore (270 million) new equity shares through this IPO. These new shares will constitute about 2.9 percent of the company’s post-issue equity capital. The special thing about this issue is that only fresh issues will be included in it. It has no offer for sale (OFS) shares, which means that existing investors do not sell their shares. The opportunity is also very special for the Reliance Industries Group, as the group is entering the public market after almost 20 years. Earlier, Reliance Group had listed Reliance Petroleum in the year 2006.

A huge amount will be spent to repay the loan

The company’s roadmap on utilization of the funds raised from the IPO is quite clear. A major portion of the capital raised will be used to repay old debt of Reliance Jio Infocomm Limited (RJIL). RJIL is the main operating subsidiary of Jio Platforms. Under the company’s plan, loans up to Rs 27,500 crore will be prepaid. This will reduce the financial burden from the company’s books. The remaining funds after repayment of the loan will be used by the company for general corporate purposes.

According to the DRHP, the Jio platform can transfer these funds to its operating company RJIL in several ways. This includes purchase of equity shares, convertible or non-convertible preference shares or debentures. Apart from this, the company can choose the method of money transfer by giving a direct loan or by combining all these options.

Equity from leading global investors

Many large institutional investors from the country and the world already have a strong stake in Jio Platforms. Currently, large institutional investors hold 30.9 percent stake in the company. It includes the world’s biggest tech giants. Jadhu Holdings, a company associated with Facebook’s parent company Meta Platforms, owns 9.98 percent stake. Google International holds 7.73 percent stake in the company.

Apart from these two tech companies, several large global funds are also partners in Jio. They include investment funds managed by Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, Vista Equity, General Atlantic, KKR-related entities and the Abu Dhabi Investment Authority (ADIA).