Jio Platforms IPO DRHP filed with SEBI: What will the company do with the issue proceeds?

Jio Platforms IPO: Reliance Industries' digital and telecommunications arm Jio Platforms has filed draft red herring prospectus (DRHP) with the market regulator, the Securities and Exchange Board of India (SEBI), to raise funds via the initial public offering.

The initial share sale is solely a fresh issuance of 27 crore shares, with no offer for sale component, according to the preliminary papers.

Jio Platforms IPO: Here's how the company plans to use the issue proceeds

The funds raised will be used for the following purposes:

• Prepayment, in full or in part of, outstanding borrowings availed by material subsidiary RJIL.
• General corporate purposes

"We expect to achieve the benefits of listing of the equity shares on the stock exchanges and creation of a public market for the equity shares," the DRHP said.

Earlier in the day, the Jio Platforms board had approved filing draft papers. The company has not disclosed the price band or the total size of the offering.

Reliance Chairman and Managing Director Mukesh Ambani called the Jio Platforms IPO the most important value creation milestone this year. He assured that the listing will unlock great value for Reliance shareholders and will offer an attractive investment opportunity to others.

He said the public issue process is being led by his children – Akash, Isha and Anant – who will lead the next phase of growth and value creation at Jio.

"The proposed listing of Jio will demonstrate to the world that India can build technology companies of global scale, global capability, and global value," Ambani said.

During Reliance's 49th annual general meeting, five strategic priorities for Jio Platforms' next phase of expansion were outlined.

The company plans to accelerate the adoption of its JioTrue5G network, expand high-speed broadband access through JioAirFiber and digitalise small and medium-sized businesses through products such as JioPC.

Jio has appointed 19 book-running lead managers to manage the issue, while KFin Technologies is the registrar. The company's shares will be listed on the NSE and BSE.