Reliance Industries' decision to kickstart the Rs 35,000-40,000 crore initial public offering (IPO) process for its telecom and digital arm Jio Platforms has revived hopes of a fresh value-unlocking trigger for the oil-to-retail conglomerate. However, analysts believe investors expecting an immediate windfall for Reliance shareholders may need to temper their expectations.
At its annual general meeting (AGM) on Friday, billionaire Mukesh Ambani announced that Jio Platforms' board had approved the draft red herring prospectus (DRHP), formally setting in motion one of India's most anticipated public offerings. The IPO will comprise a fresh issue of 270 million shares, with Reliance planning to use Rs 27,500 crore of the proceeds to repay debt, while the balance will be allocated towards general corporate purposes. The size of the mega IPO could be around Rs 35,00-40,000 crore, making it the largest ever public issue in India.
