|
The much awaited IPO process for Jio Platforms Ltd, the telecom arm of Reliance Industries, has officialy begun as the company filed the Draft Red Herring Prospectus (DRHP) with SEBI. The company stated that the proceeds from the IPO will be used to pare debt and rest of it will be used for general corporate purposes.
"We propose to prepay certain borrowings availed by the Material Subsidiary, RJIL which are in the nature of ECBs and subject to foreign currency fluctuations. While we use various derivative financial instruments such as interest rate swaps, currency swaps, forwards and options to mitigate the risk of changes in exchange rates, there can be no assurance that such hedging arrangements may be sufficient to manage fluctuations in foreign currency," the DRHP filed with market regulator SEBI said. The company said that it intends to utilise up to Rs 27,500 crore of the net proceeds to pre-pay in full or in part borrowing availed by RJIL from its lenders. The IPO will be a fresh issue of 27 crore equity shares with the entire portion marked for fresh equity shares and no Offer for Sale (OFS). The proceeds of the IPO will go entirely to the company, and no existing shareholder will sell any stake. The promoter RIL holds 66.43 per cent stake in the company and other prominent names like Google and Meta are significant shareholders. Earlier, speaking at the 49th AGM of Reliance Industries, Chairman and Managing Director Mukesh Ambani announced that the Board of Jio has approved the DRHP and will be filed today. "This is a deeply emotional moment for me, for the entire Reliance family and for millions of its shareholders," he said. (ANI)
|
