Jio Platforms Ltd, the digital services arm of Reliance Industries Ltd (RIL), filed draft papers on Friday for what could be India's largest initial public offering (IPO), seeking to raise nearly $4 billion (Rs 37,700 crore) and valuing the company at $137 billion.
This came as RIL CMD Mukesh Ambani, speaking at the 49th Annual General Meeting on Friday, announced that Jio Platforms had got the board's clearance for its proposed IPO wherein the company planned to issue up to 27 crore new shares with a face value of Rs 10 each.
The offering marks a milestone for the RIL as it seeks to unlock value from the telecom-to-technology business that has emerged as one of the group's primary growth engines since its launch in 2016. The RIL owns 66.43 per cent of Jio Platforms.
Terming it a significant turning point for India's technology ecosystem, Ambani said the planned offering will demonstrate to the world that India can build technology companies of global scale, global capability, and global value. He connected the company's future expansion to leadership from the family's next generation, stating that Akash, Isha, and Anant are heading the IPO process and will lead the next generation of value creation opportunities. He promised potential new investors of a better future ahead for Jio.
As per Securities and Exchange Board of India's Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018, the book-building procedure will be used to establish the final issue price. The transaction is expected to rank among the largest public offerings in the capital markets of India. If successful, it will surpass Hyundai Motor India's Rs 27,870 crore offering in 2024.
Citing the recent report of the World Intellectual Property Organisation, Ambani said Jio Platforms had risen from the 340th position to 20th in just a single year in terms of innovation speed as determined by patents. This makes Jio the only Indian company in the top 20 in this elite league and puts it above several global tech giants, he remarked.
With over 524 million users, Jio is country's biggest digital platform. While JioAirFiber connects 13 million homes, its 5G network has 268 million customers.
