Reliance Industries-backed Jio Platforms on Friday filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO), proposing a fresh issue of up to 27 crore equity shares with a face value of Rs 10 each.
The DRHP stated that the company proposes a “Fresh Issue Up to 270,000,000 Equity Shares of face value of Rs 10 each for cash” and clarified that the “Offer for Sale Size” is “Not applicable.”
Jio Platforms, which is promoted by Reliance Industries Limited (RIL), said the equity shares are proposed to be listed on both the BSE and the National Stock Exchange (NSE).
The company has also proposed reservation portions for eligible employees and eligible shareholders of Reliance Industries, although the final number of shares reserved under these categories will be disclosed later.
The DRHP noted that the IPO is being made under Regulation 6(1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. It will follow the standard allocation structure applicable to book-built issues, with portions reserved for qualified institutional buyers (QIBs), non-institutional investors (NIIs), retail individual investors, eligible employees and eligible RIL shareholders.
The company said the price band and minimum bid lot will be decided later in consultation with the book-running lead managers (BRLMs) and announced before the issue opens.
Jio Platforms was incorporated in November 2019 and houses Reliance’s digital services and technology businesses, including its telecom arm, Reliance Jio Infocomm Limited, which has been identified as its material subsidiary.
The DRHP said the issue dates, price band and issue size in monetary terms will be announced closer to the launch of the IPO.
The company has appointed a consortium of investment banks to manage the offering, including Kotak Mahindra Capital, Morgan Stanley India, BofA Securities India, Axis Capital, BNP Paribas, Citigroup Global Markets India, CLSA India, DAM Capital Advisors, Goldman Sachs India Securities, HDFC Bank, HSBC Securities and Capital Markets (India), ICICI Securities, IIFL Capital Services, Jefferies India, JM Financial, J.P. Morgan India, SBI Capital Markets, UBS Securities India and 360 ONE WAM. KFin Technologies has been appointed as the registrar for the issue.
It is the first public issue of equity shares by Jio Platforms. The company noted in the DRHP that there has been “no formal market for the Equity Shares” and cautioned that the eventual issue price may not be indicative of the market price after listing.