Reliance jio IPO: Reliance Industries’ digital and telecom company Jio Platforms has intensified preparations for its Initial Public Offering (IPO). According to a report published in the Economic Times, once the final notification is received from the government, the company will file its Draft Red Herring Prospectus (DRHP).
In fact, the Indian market regulator has proposed to reduce the minimum public shareholding for big IPOs from 5 percent to 2.5 percent, which is currently subject to the approval of the Finance Ministry. Considering its large size, Reliance Jio has also planned to list only 2.5 percent stake. The report states that Jio has shortlisted Morgan Stanley and Goldman Sachs as lead bankers for its upcoming IPO.
Big responsibility of lead banker
The command of the IPO is in the hands of the lead banker, who not only decides the price for the IPO but also decides the valuation for it. Help in preparing all the necessary documents such as prospectuses while following the rules of SEBI and stock exchanges. They are responsible from share allotment to listing.
What will be the size of IPO?
Jio, the parent company of India’s largest telecom operator Reliance Jio, has more than 50 crore users. In November, investment bank Jefferies had estimated the valuation of Reliance Jio at around $180 billion. At this valuation, if the company sells its 2.5 percent stake, then about $ 4.5 billion can be raised. In such a situation, it will surpass Hyundai Motor India’s $3.3 billion IPO last year in terms of size.
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