Reliance Stock Jumps Over 2.5% As Jio Files For IPO
· Free Press Journal
The stock of Reliance Industries surged up to 2.7 percent of Monday as investor sentiment turned positive after Jio filed papers with the markets regulator for public listing on Friday.
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The stock of Reliance Industries opened higher at Rs 1,324 apiece compared to the previous close of Rs 1,309 apiece. The stock further surged to Rs 1,345 apiece which was about 2.7 percent higher than the previous close.
The buying sentiment in the scrip emerged as the group’s chairman Mukesh Ambani on Friday announced that its telecom arm Jio Platforms was all set for public listing.
Soon after the announcement, Jio filed its draft red herring prospectus with the Securities and Exchange Board of India.
The proposed IPO is expected to become the largest public issue in India’s history, with an estimated fundraise of around $4 billion, or nearly Rs 37,700 crore.
Sensex Climbs 473 Points, Nifty Gains 0.6%, Banking And IT Stocks Lead Market ReboundThis will be Reliance Group’s first public offer since 2008.
According to the draft red herring prospectus (DRHP), Jio Platforms plans to issue up to 27 crore fresh equity shares.
This will account for around 2.9 percent of the company’s total equity base after the issue.
Market sources estimate the IPO could value Jio Platforms at nearly USD 137 billion, reflecting strong investor confidence in the company’s digital growth story.
The company said a large portion of the IPO proceeds will be used to repay existing borrowings.
Around Rs 27,500 crore will go towards repayment or prepayment of debt raised by Reliance Jio Infocomm Limited (RJIL).
The remaining funds will be used for general corporate purposes.
Lower debt could strengthen the company’s balance sheet and improve its future growth potential.
Jio Files ₹37,700 Crore IPO Papers, Targets $137 Billion Valuation In India’s Biggest ListingJio Platforms has attracted several global technology and investment giants over the years.
In 2020, Meta invested Rs 43,574 crore for a 9.99 percent stake, while Google invested Rs 33,737 crore for a 7.73 percent stake.
Other major investors include Silver Lake, KKR, Mubadala, ADIA, TPG, Intel Capital and Qualcomm Ventures.
Currently, Reliance Industries holds a 66.43 percent stake in Jio Platforms.
The IPO marks a major milestone in Jio’s journey as it prepares for its next phase of expansion.