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Informist, Friday, Jun. 19, 2026

 

--Jio Platforms files DRHP with fresh issue of 270 mln shrs 

--Jio Platforms to use IPO proceeds to pay debt of arm Reliance Jio Infocomm 

--Jio Platforms to use INR 275 bln of IPO funds to pay debt of Jio Infocomm 

 

MUMBAI – Jio Platforms Ltd. filed a draft red herring prospectus with the Securities and Exchange Board of India on Friday for an initial public offering comprising a fresh issue of 270 million shares with a face value of INR 10 each. There will be no offer for sale along with the issue.

 

The public offer, to be made through the book-building process, is being managed by 19 book-running lead managers, including Morgan Stanley India Co. Pvt. Ltd., BofA Securities India Ltd., BNP Paribas, and CLSA India Pvt. Ltd. KFin Technologies Ltd. is the registrar to the offer. Jio Platforms may consider raising funds by allocating shares to anchor investors prior to the bid opening, the prospectus said.

 

Jio Platforms is a technology platform built on proprietary digital technology, according to the draft papers. The company said its subsidiary, Reliance Jio Infocomm Ltd., had over 524.4 million subscribers in India, as of Mar. 31. Jio Platform operates mobile, fixed broadband, and digital services. To individual consumers, the company provides mobile and fixed digital connectivity services, such as wireless and fixed broadband. It also provides digital services across entertainment, cloud gaming, cloud computing, cloud PC, storage, and smart home solutions through its third-party products and access to artificial intelligence-based products, such as AI assistants.

 

To enterprises, the company provides broadband and leased-line connectivity, digital services such as cloud, productivity, and unified communications platforms, the Internet of Things, private 5G, and security solutions, and AI-based products such as an AI enterprise suite.

 

The company said its platform relies on 'phygital' – a combination of physical and digital – distribution capabilities, which helps it provide connectivity and digital services to its customers. The company also uses customer insights to design and deliver targeted offerings tailored to consumer needs and preferences. Jio Platforms said it is progressively embedding artificial intelligence across its technology stack. Its 'phygital' reach supports rapid delivery of digital services to its customer base, according to its draft papers.  

 

The company aims to utilise INR 275 billion from the net proceeds of the issue for prepayment, in full or part, of certain outstanding borrowings availed by Reliance Jio Infocomm. The remaining will be channelled towards general corporate purposes. If the actual utilisation towards the prepayment of outstanding borrowings is lower than INR 275 billion, the balance will be used for general corporate purposes, subject to the condition that the total deployment towards general corporate purposes does not exceed 25% of the gross proceeds, according to the prospectus.

 

In the issue, not more than 50% of the net issue will be allocated to qualified institutional buyers. Further, at least 15% of the net issue will be reserved for non-institutional investors and not less than 35% will be allocated to retail investors.

 

Outlining some of the internal risks, the company said Reliance Jio Infocomm holds the telecommunication licence and spectrum across different bands and any inability to maintain or renew such licences or to successfully bid for any spectrum required for operations could have a material impact on the business. The unified licence for providing telecom services across circles in India is due for renewal in October 2033 and the spectrum held by the company is valid for 20 years, with a majority of it expiring between 2041 and 2042. Second, any disruption to the company's network, passive infrastructure, and technology could affect operations and lead to higher customer churn, the prospectus said. 

 

The company said it depends on a limited group of passive infrastructure service providers for a substantial portion of its telecommunication towers and optical fibre network. Any disruption to the availability of these passive infrastructure assets could adversely impact the business, it added. The company also faces a threat from any cybersecurity, data, or privacy breach, which could disrupt operations and damage the brand's reputation. 

 

As of Mar. 31, the company had fund-based outstanding borrowings of INR 715.29 billion and non-fund-based debt of INR 20.22 billion, including the subsidiaries.

 

According to the company, its capital-intensive business required significant capital expenditure, and it may not realise the expected benefits. As per the data presented in the prospectus, the company spent over 23% of its revenue from operations on cash capex in FY26, amounting to INR 341.84 billion. In FY25, this metric stood at almost 35% at INR 442.68 billion.

 

The Reliance Group firm also relies on a limited number of vendors, including related parties, for network infrastructure. "Any disruptions in our relationship with vendors or any failure by them or the related parties to continue supplying equipment required to maintain and build our network infrastructure could have an adverse effect on our business, financial condition, and results of operations," the company said.

 

The company added that it may be subject to additional net neutrality regulations, which could adversely affect its business. Further, the market in India requires the company to remain competitive in both product and service offerings and in technological adoption to meet evolving customer preferences, it said.

 

The company has 34 subsidiaries, of which 11 recorded net losses in the last three financial years, though not material relative to the company's consolidated earnings. "... there is no assurance that these subsidiaries will become profitable in the future or that these losses will remain non-material to our overall financial condition," the company said. 

 

Promoter Reliance Industries Ltd. holds a 66.43% stake in the company through 5.94 billion shares. Over 3 billion shares in the company are held by entities other than the promoter and the promoter group. 

 

In FY26, Jio Platforms recorded a consolidated net profit of INR 300.64 billion on revenues of INR 1.49 trillion. In the previous financial year, the company registered a consolidated net profit of INR 261.10 billion on revenues of INR 1.28 trillion.

 

There are multiple outstanding criminal proceedings against Reliance Jio Infocomm. The total outstanding direct and indirect tax claims involving the company, its promoter, subsidiaries, and directors amount to INR 497.26 billion. Its outstanding dues to material creditors, micro, small, and medium creditors, and other creditors added up to INR 34.01 billion as of Mar. 31. (Eshitva Prakash and Shakshi Jain) End

 

Edited by Saji George Titus

 

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