Jio Platforms Ltd. has held talks with 13 marquee foreign investors to sell down 8% of individual stakes in its initial public offering (IPO), which is set to be India’s largest in history.
The company, which has the world’s second-largest telecom userbase after China Mobile, is set to file its IPO papers in Mumbai as early as this week, according to people aware of the matter. The stake sale “would be around 8% for everyone”, said one of the two people involved in the IPO process, who spoke on the condition of anonymity as the discussions were confidential.
Big investors on the list include Meta Platforms Inc. (9.99% stake) and Google (7.73%), as well as Vista Equity Partners and KKR. Three Gulf sovereign funds—Public Investment Fund, Mubadala and Abu Dhabi Investment Authority (ADIA) —are also investors. In 2020, Jio Platforms raised more than $20.5 billion from stake sales to foreign investors.
Reuters calculations show each investors’ sale of 8% of their holdings effectively implies about 2.5% of Jio Platforms’s total outstanding shares offered in the listing, as it has planned. Meta selling 8% of its 9.99% holding would mean a 0.8% stake sale, for example.
While the talks have focused on each investor selling 8% of its holding, the final numbers could still change. KKR declined to comment, Reliance Industries Ltd. and the other investors did not immediately respond to requests for comment.
No new shares in Jio Platforms IPO
The Jio Platforms IPO is being structured as an offer-for-sale (OFS)—a common strategy in India where no new funds are raised by the companies and existing shareholders offload stakes, to be taken up by the public and other investors.
“Total stake sale will be 2.5% to 3%,” said the second source aware of IPO plans. “Reliance wants to leave money on the table for retail investors and there is no decision yet on valuation of the company.”
In November, investment bank Jefferies estimated Reliance Jio’s valuation at $180 billion. Sources told Reuters in January the IPO could be worth as much as $4 billion, though final numbers will only be decided later. Jio Platforms has hired 17 banks to manage its Mumbai stock listing.
