Mumbai: Mukesh Ambani, the Chairman and MD of Reliance Industries Limited, has announced that the board of Jio Platforms has approved an IPO document, according to reports. It will be filed with the Securities and Exchange Board of India on June 19.
“Reliance Board has approved the JIO IPO. Draft Red Hearing Prospectus will be filed today. Isha Ambani, Anand Ambani and Akash Ambani will lead the project,” Ambani said at Reliance’s 49th AGM, reported Hindustan Times.
Plans to list Jio Platforms Ltd had been in the works for some time now, the report claimed. In about 20 years, this is the first stable listing from the Reliance Industries. “Listing of Jio will demonstrate to the world that India can build technology companies of global scale, capability and value,” Ambani said. He also assured of a brighter future for Jio to the investors.
In simple terms, an IPO or Initial Public Offering is when a company decides to sell the shares or ownership stakes it has. People can buy these shares through the stock exchange.
According to Bloomberg, Jio Platforms’ board has approved the issue of new 270 million shares having face value of Rs 10 rupees each. In March, reports claimed that Jio was in the final stages of preparing its draft red herring prospectus to file paperwork for the IPO.
The government had modified norms to allow companies with a post-issue valuation exceeding Rs 5 trillion (approximately $54 billion) to list by diluting a minimum of just 2.5% equity, HT report cites. The previous criteria was 5% minimum requirement for mega-cap companies and it is standard 25% as per the free-float rule.
After this modification earlier this year, Jio’s plan to file an IPO gained momentum
