Reliance Industries has restructured the planned Jio Platforms IPO into an all-new-issue offering that would sell only fresh shares and send proceeds to the company, with roughly ₹25,000 crore, about 250 billion rupees or roughly $2.65 billion, earmarked for debt repayment, according to multiple accounts. The shift abandons an earlier plan for an offer-for-sale where each of Jio’s 14 equity investors would have trimmed about 8-8.5% of their stakes, and instead dilutes existing holders proportionally, including Reliance’s roughly 67% stake. People briefed on the talks say the change followed a dispute over a proposed pricing band, with Reliance prioritizing a conservative valuation to avoid a weak listing that could hurt retail buyers. Reports add that the company may file a draft prospectus with the Securities and Exchange Board of India within a week or fortnight, potentially moving the listing toward July, subject to market and regulatory conditions.

Reliance Industries has reportedly reworked the structure of Jio Platforms’ long-awaited initial public offering so that the sale consists entirely of newly issued shares. Multiple sources described the plan as a switch away from an earlier offer-for-sale, or OFS, under which each of Jio’s 14 external equity investors would have sold about 8 to 8.5 per cent of their holdings.

Under the fresh-issue approach, existing shareholdings will be diluted proportionally rather than trimmed through secondary sales. That means Reliance Industries’ roughly 67 per cent stake in Jio would shrink on a percentage basis, but no single investor would exit by selling part of their stake to public buyers. People briefed on the talks said the promoter group favoured this route because it reduces the risk of a disappointing debut for retail shareholders.

Why Reliance changed the structure

Reports say a key friction point was the IPO price band. Several shareholders had pushed for a higher band, while Reliance apparently preferred a more conservative valuation in order to preserve listing upside. Those close to the discussions argued that aggressively high pricing could make the offer too large for markets to absorb. One account warned of particular concern if the issue crossed a roughly $4 billion scale.

The decision reflects a balancing act. Selling only new shares sends all proceeds to Jio Platforms, which can use the funds for corporate purposes rather than enabling existing investors to cash out. Roughly ₹25,000 crore is flagged as potentially available to pay down debt, with the remainder to cover other needs. The exact allocation will depend on final requirements, the reports said.

Valuation debate, investors and scale

Valuation targets for Jio have been a moving target in public reporting. Some commentary pointed to market views that put Jio’s value easily above $100 billion, while other windows cited previously ranged from $133 billion to $154 billion.

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Broker estimates have also shifted in recent months; one brokerage reportedly trimmed a target from $117 billion to $111 billion, and another placed a valuation near $136 billion.

Jio’s backers include major global technology investors, with Google and Meta among the names reported as holders. Private-equity and sovereign-wealth participants have also been identified in reporting. The group’s telecom arm, Reliance Jio Infocomm, supplies the majority of the platform’s revenue. Recent public reporting cited in the briefing put Jio Platforms’ latest annual revenue at about $17.6 billion and Jio Infocomm’s subscriber base above 488 million users.

One piece of coverage, Business Standard, reported that as many as 19 banks may have been appointed as advisors and bookrunners in the IPO process. Business Standard named Kotak Mahindra Capital, Morgan Stanley, JM Financial, Goldman Sachs, HSBC, Bank of America and Citigroup among those selected. That account was the only one in the reporting to list that particular roster of banks.

Earlier discussions of an OFS in March had envisaged a much smaller immediate dilution. Under that plan each investor would have sold a small portion of their holding, translating into near 2.8 per cent overall equity dilution. The fresh-issue plan abandons that route and concentrates dilution through issuance of new shares instead.

Sources diverge on timing. Two reports said Reliance expected to file a draft prospectus with the Securities and Exchange Board of India within a week or a fortnight, which could push the timetable toward a July listing. By contrast, another account said Reliance had decided not to launch the IPO this year and that bankers had not yet been appointed, suggesting a later delay beyond 2026.

The pricing question and the company’s appetite for a clean debut for retail investors appear to be decisive factors in the final structure and schedule. People briefed on the negotiations emphasised that Reliance’s preference was to avoid a weak listing, even if that meant the promoters and early backers would be diluted by a primary issuance.

For bankers and potential institutional buyers, the shape of the offer matters because it affects how much new capital the market must absorb and the allocation between retail, institutional and anchor investors. One report flagged a risk that pricing the issue too aggressively could make the offering too large for markets to absorb, an outcome the promoter seems intent to avoid.

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Reports say Jio will probably file a draft prospectus with the Securities and Exchange Board of India within the next week or fortnight, a step that could move the listing toward July, subject to market and regulatory conditions.

This article was created with AI assistance.