Reliance Industries is working to listing its telecom giant Jio Platforms on the stock market. The company is reportedly working with six banks to manage the share sale, with more expected to join soon. The six banks appointed so far are BofA Securities, Citigroup, Goldman Sachs, JM Financial, Kotak Mahindra Capital and Morgan Stanley. If it goes ahead as planned, it would be the first time a major unit of Mukesh Ambani's Reliance Industries has gone public in nearly two decades.
One key reason the IPO is now gaining momentum is a recent regulatory change. The government amended its listing rules to allow large companies to offer as little as 2.5% of their shares to the public, down from the earlier requirement of 5%. This gives Reliance far greater flexibility in how much of Jio it needs to sell.
Reports have previously estimated Jio Platforms to be worth as much as $170 billion. At the minimum 2.5% dilution, the company could still raise approximately $4.3 billion, or roughly ₹36,000 crore from the offering.
Once the final terms are agreed upon, Reliance will file a draft prospectus with market regulator Sebi to formally kick off the public listing process. Bloomberg noted that the terms and timeline of the offering could still change.
The new development in Jio's IPO chapter comes just days after National Stock Exchange (NSE) appointed banks for its landmark listing. NSE last week announced the finalization of 20 merchant bankers, eight law firms and several specialist advisers to manage the transaction.
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