Jio Platforms, the digital and telecom arm of Mukesh Ambani-led Reliance Industries, has filed its draft red herring prospectus (DRHP) with India's securities regulator for what is anticipated to be the country's largest initial public offering. The IPO is expected to raise a record $4 billion (₹37,000 crore), surpassing Hyundai Motor India's $3.3 billion listing in October 2024. The offering involves a fresh issue of up to 270 million shares, representing approximately 2.9% of Jio Platforms' post-issue equity, with no offer-for-sale component, meaning all proceeds will go directly to the company. This marks the first IPO from Reliance Industries in nearly two decades, following Reliance Petroleum in 2006.
A significant portion of the IPO proceeds, specifically $2.9 billion (₹27,500 crore), will be used to prepay external commercial borrowings held by Reliance Jio Infocomm (RJIL), Jio Platforms' operating subsidiary. The remaining funds are earmarked for general corporate purposes. This debt prepayment strategy aims to improve the company's balance sheet and enhance its ability to secure future funding for strategic priorities, including 5G network densification and expansion, fixed broadband penetration, and development of AI and cloud services. Jio Platforms reported operating revenue of approximately $15.6 billion (₹1.47 trillion) and a net profit of around $3.2 billion (₹300 billion) for the financial year ending March 2026, with an EBITDA increase of 18.8% to $8.1 billion (₹762.6 billion).
The IPO could value Jio Platforms at a staggering $138 billion (₹13 lakh crore), positioning it as one of Asia's most valuable companies to list. Rival Bharti Airtel has a market capitalization of $123 billion (₹11.6 lakh crore). Large investors already hold close to 30.9% of Jio Platforms, including Meta Platforms' affiliate Jaadhu Holdings with 9.98% and Google International with 7.73%. Sovereign wealth funds from Saudi Arabia and Abu Dhabi, as well as private equity firms like Silver Lake, Vista Equity, General Atlantic, and KKR-backed entities, also hold minority stakes. The IPO will reserve up to 50% of the net issue for qualified institutional buyers, at least 35% for retail investors (including a dedicated quota for existing Reliance Industries retail shareholders), and not less than 15% for non-institutional investors. Nineteen banks, including Kotak Mahindra Capital, Morgan Stanley India, and BofA Securities India, will manage the IPO.
