Jio Platforms IPO gets SEBI nod: Rs 27,500 crore debt repayment plan, $100 billion valuation in focus

Jio Platforms’ much-awaited stock market debut has moved a step closer after the Securities and Exchange Board of India (SEBI) approved the company’s proposed initial public offering (IPO), CNBC-TV18 reported. The regulatory clearance comes a little over two months after Jio Platforms filed its Draft Red Herring Prospectus (DRHP) with SEBI on June 19, setting the stage for what could become one of India’s largest-ever IPOs.

Under the proposed issue, Jio Platforms will issue 27 crore fresh equity shares, representing a stake dilution of around 2.93%. According to its IPO documents, the company plans to use approximately Rs 27,500 crore of the proceeds to pre-pay loans, while the remaining funds will be used for general corporate purposes.

The IPO will also bring renewed attention to Jio Platforms’ high-profile investor base. Reliance Industries remains the largest shareholder with a 66.43% stake, followed by Meta Platforms with 9.98% and Google with 7.73%.

Other major investors include Saudi Arabia’s Public Investment Fund, KKR, Vista Equity Partners, Silver Lake, Mubadala, General Atlantic Singapore, Abu Dhabi Investment Authority and TPG Capital.

The draft prospectus said the net proceeds from the share sale will be used towards debt repayment and general corporate purposes. According to the report, Jio Platforms could raise around $4 billion through the IPO, while the company is expected to seek a valuation of more than $100 billion.

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If completed at that scale, the offering would surpass Hyundai Motor India’s $3.3 billion IPO in 2024, potentially making Jio Platforms’ listing a landmark transaction for India’s equity capital markets. The issue could also provide a major boost to the country’s pipeline of large technology and consumer-focused listings.

Strong financial performance

The proposed listing comes as Jio Platforms continues to deliver strong operating performance across its telecom and digital businesses.

For the June quarter, Jio Platforms reported revenue of Rs 45,961 crore, up 12% year-on-year. Revenue from operations stood at Rs 39,173 crore, while EBITDA increased 15% year-on-year to Rs 20,865 crore. The EBITDA margin improved to 53% from 52% a year earlier.

Profit after tax rose 9.2% year-on-year to Rs 7,764 crore, reflecting continued growth in the company’s core operations.

Jio’s subscriber base also expanded during the quarter. It reached 533.3 million at the end of June, compared with 524.4 million in the previous quarter and 498.1 million a year earlier. The company’s 5G subscriber base stood at 285 million, highlighting the rapid expansion of its next-generation wireless network.

More IPO approvals

SEBI’s latest weekly update also showed that it had approved the IPO plans of Bharat PET, Sadbhav Futuretech, MK Sons Fine Jewels, Pushp Brand India and Paras Healthcare.

The regulator also approved a pre-filing by Paramotor Digital Technology, adding to the growing pipeline of companies seeking to tap India’s primary capital markets.

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