Jio Platforms, which is the telecom and digital services arm of Reliance Industries, has shortlisted Morgan Stanley and Goldman Sachs as the lead bankers for its proposed initial public offering (IPO). The listing is expected to value India’s largest telecom operator in the range of $133 billion to $182 billion, based on estimates by market analysts.
The company is preparing to file its draft red herring prospectus once the finance ministry approves a proposal by the Securities and Exchange Board of India to permit a 2.5 per cent public float for mega IPOs.
The proposed offering is expected to be evenly split between a primary issue and secondary share sales. Private equity investors such as KKR, TPG, Silver Lake and Vista Partners are preparing to pare their holdings. Strategic investors Google, which holds 7.75 per cent, and Meta, with a 9.99 per cent stake, are expected to retain their investments. Intel, which owns around 0.7 per cent, may consider a partial sell-down, according to industry executives and analysts.
Further, brokerage estimates for Jio Platforms’ valuation vary widely. Jefferies recently raised its enterprise valuation estimate to $180 billion following the company’s third-quarter results. Motilal Oswal Financial Services has valued the company at $148 billion, while IIFL has maintained its estimate at $133 billion. Additionally, Kotak Institutional Equities has pegged the valuation at Rs 11.59 trillion.
