Summary:
Reliance Industries Limited is working with six banks on the planned IPO of its telecom arm, Jio Platforms Limited, which could become India’s largest ever. The process has gained speed after regulatory changes allowing lower equity dilution, with estimates valuing Jio at up to $170 billion and a potential fundraising of about $4.3 billion. Once terms are finalized, the company will file its draft prospectus with the Securities and Exchange Board of India.
Reliance Industries Limited is said to be coordinating with six banks for the upcoming stake sale of its telecom arm, Jio Platforms Limited, with the possibility of bringing in additional advisers. The institutions involved in the deal include BofA Securities, Citigroup Inc., Goldman Sachs Group Inc., JM Financial Ltd., Kotak Mahindra Capital Co., and Morgan Stanley.
Jio is advancing plans for what may become the largest initial public offering in India’s history and the first such move by a significant Reliance Industries unit in nearly twenty years. Progress on the offering has accelerated following a government decision to revise listing norms, permitting large companies to sell as little as 2.5 percent of their shares.
Earlier estimates from bankers suggested a valuation of up to $170 billion for Jio Platforms, indicating that the company could potentially raise about $4.3 billion at the minimum dilution level. After finalizing the terms, the firm is expected to file its draft red herring prospectus with the Securities and Exchange Board of India.
