Jio Platforms Gets SEBI Nod for a Record INR 37,700 Cr IPO
Jio Platforms gets SEBI nod for a record INR 37,700 crore IPO, India’s largest-ever public issue, with no offer-for-sale.
Jio
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Reliance Industries’ digital arm Jio Platforms has received SEBI’s observation letter for its Draft Red Herring Prospectus, clearing the path for what would be India’s largest-ever IPO at approximately INR 37,700 crore (about USD 3.8 billion). The company reported a consolidated net profit of INR 30,064 crore on revenue of INR 1.49 lakh crore in FY26.
The offering comprises a fresh issue of 27 crore equity shares with a face value of INR 10 each, with no offer-for-sale component indicating existing investors, including Google, Meta, and Silver Lake, do not intend to exit during the listing. Jio Platforms plans to use up to INR 27,500 crore of proceeds to repay or prepay borrowings of Reliance Jio Infocomm, leaving the company with only INR 5,500-10,500 crore for other corporate needs.
Brokerages estimate the capital raise could fall between INR 33,000 crore and INR 38,000 crore. “Jio has strong cash flows, and coming back with a listing allows them a more focused approach going ahead. They might clear debt, but as the opportunity arises, they have levers and leverage to raise equity and debt if needed,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Debt repayment is expected to lower Jio’s interest costs by INR 2,000-2,500 crore, according to Deven Choksey of DRChoksey Finserv. On the listing’s market impact, Choksey said that assuming a listing market cap of INR 13-14 lakh crore, Jio would rank among the top five listed companies in the country. At a market cap of INR 20 lakh crore, Jio’s valuation could reach parity with Reliance Industries’ current market cap within two to three years.
Shriram Subramanian, Founder of proxy advisory firm InGovern, noted that Jio’s listing by itself will not lead to a holding-company discount for RIL, given the parent’s increasingly diversified business mix across retail, telecom, and petrochemicals.
The IPO may also benefit India’s data centre segment, where players like Sify and ESDS Software Solutions have attempted public offerings, said Yugal Joshi, Partner at Everest Group.
In its latest quarter, Jio’s telecom arm reported robust performance, with continued subscriber additions, modest ARPU improvement, and record-high EBITDA margins, which grew 18.8% to INR 20,865 crore.
Reliance Industries’ digital arm Jio Platforms has received SEBI’s observation letter for its Draft Red Herring Prospectus, clearing the path for what would be India’s largest-ever IPO at approximately INR 37,700 crore (about USD 3.8 billion). The company reported a consolidated net profit of INR 30,064 crore on revenue of INR 1.49 lakh crore in FY26.
The offering comprises a fresh issue of 27 crore equity shares with a face value of INR 10 each, with no offer-for-sale component indicating existing investors, including Google, Meta, and Silver Lake, do not intend to exit during the listing. Jio Platforms plans to use up to INR 27,500 crore of proceeds to repay or prepay borrowings of Reliance Jio Infocomm, leaving the company with only INR 5,500-10,500 crore for other corporate needs.
Brokerages estimate the capital raise could fall between INR 33,000 crore and INR 38,000 crore. “Jio has strong cash flows, and coming back with a listing allows them a more focused approach going ahead. They might clear debt, but as the opportunity arises, they have levers and leverage to raise equity and debt if needed,” said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
Entrepreneur Staff • Editor
Entrepreneur Staff
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