Is Ambani’s Reliance Jio Platforms IPO Pivoting To Pure Fundraising? Check IPO Date, Issue Size And More

Indian billionaire Mukesh Ambani’s Reliance Jio Platforms has reportedly revised its proposed Mumbai IPO structure, shifting focus to a pure fundraising exercise instead of allowing existing foreign investors to partially exit through share sales, according to sources reported by Reuters.

Jio Platforms — which owns India’s telecom giant Reliance Jio Infocomm Limited and is the world’s second-largest telecom operator by subscriber base after China Mobile — counts global tech and investment giants such as Meta Platforms, Inc., Alphabet Inc.’s Google and Vista Equity Partners among its investors. The much-anticipated IPO is expected to be one of India’s biggest-ever public issues.

Why Did Jio Platforms Drop Its Earlier OFS IPO Plan?

The firm earlier held discussions with its foreign ⁠investors for each to sell 8% of their individual holdings in the IPO, totalling 2.5% of the company, Reuters ​reported previously. That would have allowed new investors to come in and let foreign investors sell some of their ​holdings without any fresh fundraising in a process called an offer-for-sale (OFS) in India.

That plan has been dropped, two sources with direct knowledge of the matter said. They requested anonymity because they were not authorised to speak to the media.

Reliance now plans to raise ​fresh funds totalling 2.5% of the company’s size. “Investors were not keen to sell and wanted to stay invested for ​the long term,” one of the sources said.

The Economic Times was first to report on the company’s plans to pivot to ‌a ⁠fresh fundraising with the offering on Monday.

Jio Platforms did not respond to a Reuters request for comment.

Is The West Asia Conflict Delaying Jio Platforms’ IPO Plans?

The filing for the Jio Platforms IPO, which was expected as early as March, was pushed back following the outbreak of the U.S.-Israeli war on Iran, with investors losing appetite for new listings.

In March, Walmart-backed Indian fintech firm PhonePe paused plans ​for an IPO, citing geopolitical ​tensions and volatility in ⁠global capital markets.

The Iran war is certainly an “overhang,” said the first source, speaking about Jio Platform’s delayed IPO filing.

Why Is Jio Platforms IPO So Important?

Jio Platforms’ listing is a key plank of Ambani’s long-term ​vision to transform Reliance from an oil-and-chemicals giant into an “everything company” spanning consumer, retail ​and technology.

In 2020, ⁠Jio raised funds from major global investors who were betting on India’s rapidly expanding digital economy, where smartphone penetration is accelerating, internet costs are among the lowest in the world and a young, mobile-first population is coming online.

How Much Could Jio Platforms IPO Be Worth?

In November, ⁠investment bank ​Jefferies estimated Reliance Jio’s valuation would be $180 billion. Sources told Reuters ​in January that the IPO could be worth as much as $4 billion, though final numbers would be decided later.

The company has reportedly hired 17 banks to manage its Mumbai listing, underscoring the scale and significance of what is expected to be one of India’s largest IPOs ever.

Reliance Jio Platforms IPO Dates And Issue Size

Reliance Jio Platforms has not yet announced the official dates for the opening and closing of its much-awaited IPO until now. The final issue size has also not been disclosed.

Also Read: RBI Selling Dollars To Curb Rupee’s Fall? Traders’ Big Claim Amid Oil Price Surge

(With inputs from Reuters)

(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)