Jio Platforms IPO: SEBI clears DRHP; here's all you need to know

India’s markets regulator has cleared the way for the proposed initial public offering (IPO) of Jio Platforms Ltd, setting the stage for what could potentially become the country’s largest stock market listing.

The Securities and Exchange Board of India (Sebi) issued its observation letter on Friday, 28 August for the company’s draft red herring prospectus (DRHP), marking a key step towards the IPO.

Reliance Industries Ltd, the parent company of Jio Platforms, confirmed the development in a stock exchange filing, stating that its subsidiary had received Sebi’s observation letter for the proposed public issue.

According to a Mint report, the Sebi approval allows Jio Platforms to formally begin marketing the IPO, with the company’s management expected to participate directly in the process. Initial discussions have reportedly indicated strong interest from global investors, including sovereign wealth funds and pension funds.

Jio Platforms is expected to pursue a stock market listing within the next couple of months, the report added, citing a person familiar with the developments.

The proposed IPO is being closely watched given Jio Platforms’ scale and its position as the digital and telecommunications arm of Reliance Industries. A listing of the company could rank among the largest IPOs in India, depending on the final issue size and valuation.

A spokesperson for Jio Platforms did not immediately respond to Mint’s queries, according to the report.

Jio Platforms IPO: ₹35,000 crore fresh issue could set new record

Jio Platforms, the digital services arm of Reliance Industries Ltd, is planning to raise around ₹35,000 crore ($4 billion) through its initial public offering (IPO), potentially making it the largest IPO in India’s history, according to a Mint report.

The proposed issue will consist entirely of a fresh issue of shares, with no offer-for-sale (OFS) component. If completed at the targeted size, the IPO would surpass previous record offerings by Hyundai Motor India Ltd and Life Insurance Corp. of India (LIC), as well as the proposed ₹30,000 crore IPO of the National Stock Exchange of India Ltd.

Jio Platforms IPO valuation

Jio Platforms plans to issue 270 million equity shares with a face value of ₹10 each. Since there will be no OFS component, the entire gross proceeds from the issue will accrue to the company.

Analysts at Morgan Stanley and Citi Research have valued Jio Platforms at around $133 billion, implying a valuation multiple of approximately 13 times estimated FY27 enterprise value to EBITDA, according to Mint report.

How will Jio Platforms use the IPO proceeds?

Jio Platforms plans to utilise up to ₹27,500 crore from the IPO proceeds to prepay certain borrowings of its material subsidiary, Reliance Jio Infocomm Ltd (RJIL).

The balance of the funds raised will be deployed towards general corporate purposes.

Jio Platforms IPO: DRHP and lead managers

Led by Akash Ambani, Jio Platforms filed its draft red herring prospectus (DRHP) on 19 June.

The book-running lead managers for the proposed IPO include Kotak Mahindra Capital Co, Morgan Stanley India Co, BofA Securities India Ltd, Axis Capital Ltd, BNP Paribas, Citigroup Global Markets India Pvt Ltd and Goldman Sachs (India) Securities.

Who owns Jio Platforms?

Reliance Industries currently holds a 66.43% stake in Jio Platforms. Global technology and private equity investors also hold significant stakes in the company.

Meta Platforms Inc. owns 9.98% through its affiliate Jaadhu Holdings LLC, while Google International LLC holds 7.73%.

Among other investors, KKR & Co. and Vista Equity Partners Management LLC each hold 2.31% through affiliate funds. Silver Lake owns 1.88%, followed by Mubadala Investment Co. at 1.85%, General Atlantic at 1.34% and the Abu Dhabi Investment Authority at 1.16%.

Jio Platforms Q1FY27 financial performance

Jio Platforms reported a 9.2% year-on-year increase in net profit to ₹7,764 crore in Q1FY27, compared with ₹7,110 crore in the corresponding quarter of the previous year.

Revenue from operations rose 11.8% year-on-year to ₹39,173 crore, from ₹35,032 crore a year earlier.

The company's growth was supported by continued gains in subscriber market share, higher average revenue per user (ARPU) and increased contribution from its digital services business.

However, net profit declined 2.15% sequentially, primarily due to higher finance costs and depreciation expenses as investments in 5G network assets became operational.

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