Mumbai, March 26: Reliance Jio Platforms is set to file draft papers for its initial public offering (IPO) in Mumbai as early as this week. Existing foreign investors are expected to reduce their holdings slightly as part of the listing process, according to a Reuters report by Kane Wu, Aditya Kalra, and Vibhuti Sharma, citing sources familiar with the situation.
Meta, Google, and Global Funds Likely to Trim Stakes
The company has reportedly engaged with around 13 prominent global investors, including technology giants, private equity firms, and sovereign wealth funds, to sell approximately 8 percent of their individual stakes. This divestment could collectively represent about 2.5 percent to 3 percent of Jio Platforms’ total equity available to the public, as per the report.
The IPO is anticipated to be structured as an offer-for-sale (OFS), a common method in Indian listings where existing shareholders sell shares without the company raising new capital.
Major investors in Jio Platforms include Meta, holding a 9.99 percent stake, and Google, with 7.73 percent, alongside private equity firms like Vista Equity Partners and KKR, as well as three Gulf sovereign funds: the Public Investment Fund, Mubadala, and the Abu Dhabi Investment Authority (ADIA).
The stake sale is expected to be around 8 percent for each investor, according to one of the sources involved in the IPO process. The final amount of the stake sale and valuation are still under discussion and may change.
For instance, if Meta sells 8 percent of its 9.99 percent holding, it would result in a 0.8 percent stake sale by the U.S. tech company. Discussions have centered on each investor selling 8 percent of their holdings, but the final figures could still vary.
Valuation Talks Ongoing
“The total stake sale will be 2.5 percent to 3 percent,” a second source familiar with the IPO plans stated. “Reliance aims to leave room for retail investors, and no decision has been made yet regarding the company’s valuation.”
Investment bank Jefferies has estimated Jio Platforms’ valuation at approximately USD 180 billion. Previous reports suggested the IPO could raise up to USD 4 billion, although final figures are still pending.
Jio Platforms, which operates one of the world’s largest telecom networks by subscriber count, raised over USD 20 billion from global investors in 2020. The company has reportedly appointed 17 banks to manage the IPO process.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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