Mukesh Ambani is set to launch the biggest IPO; the draft will be released this very month..
Mukesh Ambani-led Reliance Industries is moving ahead with great speed toward launching the Initial Public Offering (IPO) of its flagship telecom unit, Jio Platforms Limited. According to a report by *The Economic Times*, the company is poised to file its Draft Red Herring Prospectus (DRHP) with the market regulator by the end of this month. This draft is expected to include the company's financial figures up to the end of December.
**How Extensive Are Reliance's Preparations?**
The seriousness of Reliance's management regarding this mega-IPO for Jio can be gauged from the fact that the company has taken decisive steps in this direction. To successfully manage this massive issue in the market, a total of 17 top-tier bankers were appointed on Tuesday. According to sources involved in the process, nine renowned global banks have been selected to play a pivotal advisory role. These global names include some of the world's largest financial institutions, such as Morgan Stanley, HSBC Holdings PLC, JPMorgan Chase & Co., Citigroup Inc., and Goldman Sachs Group Inc. Additionally, on the domestic front, the significant responsibility of serving as advisors has been entrusted to Kotak Mahindra Capital Company, Axis Capital Limited, JM Financial Limited, and SBI Capital Markets Limited.
Has the Path for the 'Mega-IPO' Been Cleared?
Plans for this highly anticipated Jio IPO truly gained momentum when the government introduced a major and favorable change to listing requirements. Under this new approval granted by the government, large issuers are now permitted to dilute (offer) only 2.5% of their equity when making their debut on the stock market. This small yet extremely significant change has considerably smoothed the path for a corporate giant like Reliance to launch an IPO. Market experts firmly believe that this could prove to be the largest IPO in India's history to date. Another interesting aspect is that this will be the first IPO launched by a major entity of Mukesh Ambani's flagship company, Reliance, in nearly two decades.
When will the issue arrive?
There is a strong possibility that the proposed IPO will primarily involve the sale of shares by existing investors (a secondary share sale). If all preparations proceed according to plan, investors could have the opportunity to invest in this IPO by the end of this year. However, it is important to note that the exact size, structure, and precise timing of this entire transaction are currently being finalized, and there remains scope for adjustments. As of now, neither the company nor representatives from the associated banks have officially commented on this matter after business hours.
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