Reliance Industries Limited Chairman and Managing Director Mukesh Ambani has announced that the board of Jio Platforms has approved the IPO document and it will be filed with the Securities and Exchange Board of India (SEBI) today, June 19.
“The Reliance board has approved JIO IPO. The draft red herring prospectus will be filed today. Isha Ambani, Anand Ambani and Akash Ambani will lead the project,” Ambani said at the company’s 49th AGM.
Plans to list Jio Platforms Limited were in the works for some time. This is Reliance Industries’ first listing in almost two decades. “Jio’s listing will show the world that India can create technology companies of global scale, capability and value. I assure you and all potential new investors that a bright future awaits Jio,” Ambani said at a Reliance event on Friday.
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In simple terms, an IPO or initial public offering occurs when a company decides to sell its shares or ownership stake. People can buy these shares through the stock exchange if they believe that the company will grow and become more valuable over time.
A company files an IPO to raise funds and become publicly traded. according to a bloomberg According to the report, the board of Jio Platforms has approved the issuance of new 270 million shares of face value Rs 10 each.
It was reported in March that Jio was in the final stages of preparing its draft red herring prospectus for filing the paperwork for the IPO with SEBI.
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Earlier this year, the government amended the norms to allow companies with higher valuations after the issue ₹₹5 trillion (about $54 billion) for listing by diluting a minimum of 2.5% equity. This was a steep drop from the previous 5% minimum requirement for mega-cap companies, and well below the standard 25% free-float rule.
After this, the news of Jio planning to file an IPO gained momentum.
