The observations from Sebi come after Jio Platforms filed its draft papers for a proposed IPO comprising an entirely fresh issue of up to 27 crore equity shares, with no offer-for-sale (OFS) component. The company is expected to raise around Rs 35,000 crore, making it the largest public issue in India’s capital markets history.
As part of the review process, Sebi typically seeks additional information or clarifications from issuers before issuing its final observations, which are required for companies to proceed with an IPO.
Unlike many recent mega listings that primarily allowed existing shareholders to monetise their investments, Jio’s proposed IPO is structured entirely as a fresh issue. This means the proceeds will flow directly into the company instead of selling shareholders.
According to the draft prospectus, Jio plans to deploy Rs 27,500 crore from the IPO proceeds towards repayment or prepayment of debt. The remaining funds will be used for investments in network expansion, artificial intelligence infrastructure, digital services and other corporate purposes.
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Reliance Industries Chairman Mukesh Ambani had described the proposed listing as the group’s most significant value-creation milestone this year while announcing the IPO at Reliance Industries’ annual general meeting. He said the listing would unlock value for Reliance shareholders while providing investors an opportunity to participate in the growth of India’s largest digital services company.
Also read: Broader market winners! How investors found 15 multibaggers in a muted Nifty year?Jio Platforms counts several marquee global investors among its shareholders, including Google, Meta, KKR, Silver Lake, Vista Equity Partners, General Atlantic, Abu Dhabi Investment Authority and Saudi Arabia’s Public Investment Fund. Reliance Industries currently owns about 67% of Jio Platforms.
The IPO is also expected to provide the market with an independent valuation for Jio’s telecom and digital business, which has so far remained embedded within Reliance Industries’ conglomerate structure.
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