Jio sets eyes on Navratri-Diwali period to launch mega $4 billion IPO

Mumbai: Jio Platforms (JPL), the telecom, digital and technology arm of Mukesh Ambani-owned Reliance Industries, may launch its estimated $4-billion initial public offering (IPO)-India's largest ever-by the end of October or early November, people familiar with the development told ET.

"Most likely, Jio plans to launch the IPO toward the end of October, particularly around the auspicious days during Navratri," said a person aware of the likely timelines. "If the launch gets pushed toward the end of October, there could also be some spillover into the first week of November. If not the Navratri, the company could target Diwali for the IPO."

Jio is likely to finalise the exact dates within a couple of weeks after which it would initiate roadshows overseas before holding them at home, said a source close to the development.

The company plans three weeks of international and two weeks of domestic roadshows, three people in the know said.

Agencies

Dates to be finalised soon, company to hold several weeks of intl, domestic roadshows

Details from the DRHP

If the IPO coincides with the Navratri, which starts on Oct 11 and ends on Dussehra (Oct 20), the roadshows could begin as early as next week. Diwali falls on Nov. 8, while Dhanteras is on Nov 6.

Emails sent to the company and lead bankers remained unanswered until the publication of this report.

The company that had filed draft IPO papers in June, received approval from the Securities and Exchange Board of India (Sebi) on August 28 to launch its share sale.

Shattering Records

Bankers estimate the Jio IPO could raise around Rs 37,800 crore, potentially making it India's largest public issue.

The Jio IPO is expected to surpass the proposed Rs31,000-crore-IPO by National Stock Exchange (NSE). Hyundai Motor India's Rs 27,000 crore IPO in 2024 remains the largest completed IPO in the country so far.

According to the Draft Red Herring Prospectus (DRHP), Jio Platforms plans to issue up to 270 million fresh equity shares, representing around 2.9% of its post-IPO equity capital. The proposed IPO does not include an offer-for-sale (OFS) component.

The offering will be the first IPO from the Reliance Industries group in nearly two decades, since the listing of Reliance Petroleum in 2006.

A portion of the IPO proceeds will be used to prepay up to Rs 27,500 crore of loans at Reliance Jio Infocomm Ltd (RJIL), the operating subsidiary of Jio Platforms. The remaining proceeds will be used for general corporate purposes.

Jio Platforms may provide funds to RJIL by subscribing to its equity shares, convertible or non-convertible preference shares or debentures, or through loans, or a combination of these, according to the DRHP.

Large investors collectively hold nearly 30.9% of Jio Platforms. Jaadhu Holdings, an affiliate of Meta Platforms, owns 9.98%, while Google International holds 7.73%. Other investors include Saudi Arabia's Public Investment Fund, Silver Lake and Vista Equity affiliates, General Atlantic, KKR-backed entities and investment vehicles of the Abu Dhabi Investment Authority.