Synopsis
Reliance Jio Platforms is in talks with 13 foreign investors, including Meta and Google, to sell down 8% of their individual stakes in an upcoming Mumbai IPO. This stake sale, expected to be between 2.5% to 3% of total shares, aims to offer value to retail investors. The telecoms-to-AI giant is preparing to file for IPO approval this week.Listen to this article in summarized format
The news agency reported that Jio Platforms, home to the world’s second-largest telecom operator by subscribers after China Mobile, is likely to file its IPO papers as early as this week.
The investor base includes major global names such as Meta, which holds a 9.99% stake, and Google with 7.73%, along with Vista Equity Partners and KKR. Sovereign wealth funds from the Gulf, including the Public Investment Fund, Mubadala and the Abu Dhabi Investment Authority, are also among the shareholders.
The report added that each investor is expected to sell around 8% of their holdings, although discussions are still ongoing and subject to change. Reuters calculations suggest that if each investor sells 8% of their stake, it would translate into roughly 2.5% of Jio Platforms’ total outstanding shares being offered in the IPO. For instance, an 8% sale of Meta’s 9.99% holding would amount to a 0.8% stake sale in the company.
The IPO is being structured as an offer-for-sale, a common approach in India where existing shareholders sell part of their holdings without the company raising fresh capital. The report also added that the total stake sale could be in the range of 2.5% to 3%, with the company aiming to leave sufficient upside for retail investors. The final valuation is yet to be decided.
In 2020, Jio Platforms had raised over $20.5 billion through stake sales to global investors. In November, Jefferies estimated the company’s valuation at $180 billion, while sources told Reuters in January that the IPO could be worth up to $4 billion, although final figures are still under discussion.
