Jio Platforms sets terms for proposed October IPO

Jio Platforms has set a price band of Rs 1,065 to Rs 1,119 per share for its proposed initial public offering, which is scheduled to open for subscription on October 21 and close on October 23. The company expects to raise up to Rs 30,213 crore through the fresh issue, according to its red herring prospectus. The offering comprises up to 27 crore new shares, with no offer-for-sale component. That means proceeds from the issue will go to Jio Platforms rather than to existing shareholders selling their stakes. The shares are scheduled to list on the BSE and the National Stock Exchange on October 28, subject to the offering proceeding as planned. The prospectus allocates up to Rs 27,500 crore of net proceeds to repay or prepay borrowings at Reliance Jio Infocomm, Jio Platforms’ operating subsidiary. The company has said the remaining proceeds will be available for eligible business requirements and general corporate purposes. Akash Ambani, Jio Platforms’ managing director, said the full IPO proceeds would make the company net-debt-free. He cited nearly $3 billion in net debt and said future growth investment would be funded from operating revenues and cash flows.