Jio’s IPO
Reliance Industries’ proposed IPO for its digital arm, Jio Platforms, is facing a lot of difficulties due to increased market volatility due to Jio political tension and Iran War. Now the group is reviewing the structure of this deal, due to which its timeline is being affected and the returns of investors can also be affected in this period of fall in Indian shares and outflow of capital. Due to which the whole process has become very slow. The draft paper which was to be submitted in the first half of the year and the issue was to be made public, now seems to be postponed to the second half. According to the report, the date for filing the draft paper is not fixed yet. Reliance can change its plan and this date can come anytime in the second half of the year. Experts believe that the size of this IPO could be around $4 billion.
According to an ET report, the company, controlled by billionaire Mukesh Ambani, has slowed down its preparations as it is reviewing the structure of the deal due to geopolitical tensions and market volatility. These people said that the company is still planning to submit draft documents for the IPO and can move forward on it at any time. The listing of Jio will be the first public offering of a major unit of Reliance Industries in almost two decades. This could prove to be a big and historic opportunity for India’s weakening capital market.
company plan
This plan got a big boost in March when the government approved changes in listing rules to make big IPOs easier, but Mukesh Ambani’s promise to complete the deal in the first half of this year now seems to be in danger. According to people with knowledge of this deal, the company has now changed its strategy and decided to issue completely new shares and has canceled its earlier plan of selling shares by old investors.
How much will the IPO cost?
According to the report, up to $4 billion can be raised through this IPO. If this happens, it will be the country’s biggest listing till date, which will be much more than the $3.3 billion raised by Hyundai Motor India. This can prove to be a big support for the market, especially at a time when only about $3.5 billion has been raised from the IPOs held so far this year. This is much lower than the fast pace of fund raising listings in the last two years. A major reason for this is that India is struggling with the economic impact of the ongoing war in Iran. For this reason, Prime Minister Narendra Modi has appealed to people to use less fuel and limit foreign travel. The government is taking steps to conserve foreign exchange reserves and prevent money from leaving the country, as rising oil prices can significantly increase India’s import expenses.
Also read- Our rupee will become stronger against the dollar! RBI made this masterplan to revive Indian currency
