It is a go-ahead for Reliance Industries, which is gearing to initiate the much-awaited initial public offering (IPO) of its digital arm, Jio Platforms.
As per a Bloomberg report, Reliance Industries will move ahead with the filing of draft paperwork for Jio Platforms IPO in the month of May. Earlier, it was expected to be initiated in March.
Why was the Reliance Jio IPO delayed?
The delay, as per the report, was strategised in response to the global market sentiments and peak geopolitical uncertainty linked to the Iran conflict, which might affect the investor sentiments.
By delaying the filing window, Reliance can now include a detailed report of earnings for the full fiscal year, which will include full-year earnings performance, details on the recent subscriber growth trends, and even the updated ARPU (Average Revenue Per User)figures. The comprehensive view of the firm in the market can also give investors a broad view into the statistics to make an informed decision.
Reliance Jio Platforms IPO is also stated to become the largest-ever IPO in the country. As per media reports, Reliance formally kicked off IPO preparations last month, appointing as many as 19 banks to manage the issue. Kotak Mahindra Capital Co., Morgan Stanley, JM Financial Ltd., Goldman Sachs Group Inc., HSBC Holdings Plc, Bank of America Corp. and Citigroup Inc. are among those selected for advisory roles.
However, the firm has not announced an official IPO application window yet, with information regarding the same expected to be out in the near future.
