Jio Platforms files draft papers for proposed $4 billion IPO ahead of Reliance AGM

Mumbai: Reliance Industries gained as much as 3% on Monday as investors turned optimistic about value unlocking through the upcoming Jio Platforms IPO, artificial intelligence initiatives and the company's new energy ventures. Brokerages see upside potential of up to 35% in the stock following the announcement of these plans at the Annual General Meeting on Friday. The stock ended 1.2% higher to close at ₹1,324.7Analysts said the biggest trigger for the stock was the proposed Jio IPO, which could give investors greater visibility into the telecom company's growth and profitability metrics. "The primary reason for the buying interest in Reliance Industries was the value unlocking from the Jio IPO that could provide investors clear insight into Jio's ARPU," said Vyom Chheda, Research Analyst, StoxBox.131922471Jio Platforms, the telecom arm of Reliance Industries, on Friday filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India for an initial public offering. Bankers indicated the IPO size is likely to be around $4 billion (over ₹37,000 crore), valuing the telecom operator at around ₹13 lakh crore. Reliance's market cap is ₹17.95 lakh crore. "The value unlocking of the telecom business into a large cap from a mega cap is positive," said Gaurav Sharma, head of research, Globe Capital.Nomura has a 'Buy' rating on the stock and a target price of ₹1,640, implying an upside potential of around 24% from Monday's close."Post the potential Jio IPO, new catalysts to look forward to may come from ramp-up of new energy business and revenue contribution starting FY27 growth of the AI business with 120MW by FY26-end; and potential listing of the Retail business," said Nomura analysts.At the AGM, chairman Mukesh Ambani detailed Reliance's execution roadmap for its AI business and outlined plans for scaling up the company's new energy ventures "The company indicated a long runway for growth in retail and consumer business and announced investments in an AI plant in Jamnagar," said StoxBox's Chheda. "The optimism in Reliance Industries is expected to continue, and investors should subscribe to the Jio IPO."Motilal Oswal Financial Services expects RJio to remain Reliance's biggest growth driver, with digital services likely to contribute about 80% of the company's incremental Earnings Before Interest, Tax, Depreciation and Amortisation (Ebitda) over FY26-28.

Reliance Industries shares surged after Jio Platforms filed draft papers for what could become India’s largest-ever IPO.

The stock of Reliance Industries surged up to 2.7 percent of Monday as investor sentiment turned positive after Jio filed papers with the markets regulator for public listing on Friday.The stock of Reliance Industries opened higher at Rs 1,324 apiece compared to the previous close of Rs 1,309 apiece. The stock further surged to Rs 1,345 apiece which was about 2.7 percent higher than the previous close.The buying sentiment in the scrip emerged as the group’s chairman Mukesh Ambani on Friday announced that its telecom arm Jio Platforms was all set for public listing.Soon after the announcement, Jio filed its draft red herring prospectus with the Securities and Exchange Board of India.The proposed IPO is expected to become the largest public issue in India’s history, with an estimated fundraise of around $4 billion, or nearly Rs 37,700 crore.Sensex Climbs 473 Points, Nifty Gains 0.6%, Banking And IT Stocks Lead Market Rebound This will be Reliance Group’s first public offer since 2008.According to the draft red herring prospectus (DRHP), Jio Platforms plans to issue up to 27 crore fresh equity shares.This will account for around 2.9 percent of the company’s total equity base after the issue.Market sources estimate the IPO could value Jio Platforms at nearly USD 137 billion, reflecting strong investor confidence in the company’s digital growth story.The company said a large portion of the IPO proceeds will be used to repay existing borrowings.Around Rs 27,500 crore will go towards repayment or prepayment of debt raised by Reliance Jio Infocomm Limited (RJIL).The remaining funds will be used for general corporate purposes.Lower debt could strengthen the company’s balance sheet and improve its future growth potential.Jio Files ₹37,700 Crore IPO Papers, Targets $137 Billion Valuation In India’s Biggest Listing Jio Platforms has attracted several global technology and investment giants over the years.In 2020, Meta invested Rs 43,574 crore for a 9.99 percent stake, while Google invested Rs 33,737 crore for a 7.73 percent stake.Other major investors include Silver Lake, KKR, Mubadala, ADIA, TPG, Intel Capital and Qualcomm Ventures.Currently, Reliance Industries holds a 66.43 percent stake in Jio Platforms.The IPO marks a major milestone in Jio’s journey as it prepares for its next phase of expansion.

Jio Platforms, the digital and telecom arm of Mukesh Ambani’s Reliance Industries, filed its draft red herring prospectus with India’s securities regulator on Friday for what would be the country’s largest initial public offering. The filing covers a fresh issue of up to 270 million shares, with no offer-for-sale component, meaning every rupee raised flows […] This story continues at The Next Web

Mumbai: Jio Platforms (JPL) - the telecom, digital and technology arm of Mukesh Ambani-led Reliance Industries - filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India on Friday, for what's expected to be India's largest-ever public issue.Bankers indicated the initial public offering (IPO) size is likely to be a record $4 billion (₹37,000 crore). The National Stock Exchange has just filed its DRHP for an IPO that is expected to raise ₹30,000 crore ($3.2 billion), making it the second-biggest. The largest so far is Hyundai Motor India's ₹27,000-crore issue in 2024. This is the first IPO from the Reliance Industries (RIL) stable in nearly two decades, after that of Reliance Petroleum in 2006.131869290DRHP Was Deferred Amid West Asia Tensions It will entirely be a fresh issue of 270 million shares, amounting to 2.9% of JPL's total equity.The IPO size could value Jio Platforms at as much as ₹13 lakh crore ($138 billion), according to ET's calculations. Rival Bharti Airtel's market capitalisation is ₹11.6 lakh crore based on the Friday close, ranking it third behind RIL and HDFC Bank. RIL, with a market cap of ₹17.7 lakh crore, holds 66.43% of Jio Platforms' pre-issue equity.Part of the proceeds will be used to pay up to ₹27,500 crore of loans early, at Reliance Jio Infocomm (RJIL), JPL's operating subsidiary, with the rest to be used for general corporate purposes, said the documents released on Friday.Jio Platforms may extend funds to RJIL by subscribing to its equity shares, convertible or non-convertible preference shares, debentures, or by granting loans or a mix of both, according to the DRHP."The company believes that the progressive deleveraging of the balance sheet, further strengthened by the proposed prepayment from net proceeds, will position the company favourably for continued investment in its strategic priorities, including 5G network densification and expansion, fixed broadband penetration, AI and cloud services, enterprise digital services, and international technology partnerships," the offer document said.Large investors own close to 30.9% of Jio Platforms. Jaadhu Holdings, an affiliate of Meta Platforms, holds 9.98% of the company, followed by Google International at 7.73%. Saudi Arabia's Public Investment Fund, Silver Lake and Vista Equity affiliates, General Atlantic, KKR-backed entities and Abu Dhabi Investment Authority vehicles hold minority stakes.Jio Platforms had earlier planned to file the DRHP in March, but put the plan on hold amid uncertainty over the West Asia conflict and volatile equity markets. The initial plan was for shareholders to offer their shares in the IPO, but this was later changed to a fresh issue.Up to 50% of the net issue will be allocated to qualified institutional buyers, including anchor investors, while at least 35% will be reserved for retail investors and not less than 15% for non-institutional investors.The IPO will be managed by a consortium of 19 book-running lead managers, including Kotak Mahindra Capital, Morgan Stanley India, BofA Securities India, Axis Capital, BNP Paribas, Citigroup Global Markets and DAM Capital Advisors, among others.

Jio Platforms, Reliance Industries' digital arm, is set to launch India's largest-ever IPO, aiming to raise up to $4 billion. The offering will be a primary share sale, with proceeds earmarked for debt reduction and corporate needs, marking a significant value-creation milestone for the company. This move signals a major event for the Indian stock market, with Jio expected to command a valuation exceeding $100 billion.