Reliance plans for an overseas listing of Jio Platforms, suggests reports

After raising around $10.3 billion from five investors within a month, Reliance Industries is reported to be thinking of an overseas listing of Jio Platforms. A report by Bloomberg suggests that proposed IPO can take place within next two years and company hasn’t decided on a listing venue. Reportedly,  final decision on timeline and size is yet to be taken.

READ: Reliance Launches JioMart Online Grocery Service, To Deliver In Over 200 Towns

RIL overseas IPO?

At AGM last year, RIL Chairman Mukesh Ambani said, "We have received strong interest from strategic and financial investors in our consumer businesses. We will induct leading global partners in se businesses in next few quarters, and move towards listing both se companies in next five years."

Since April, Jio has raised Rs 78,562 crore over five investments from various investors including techlogy giant Facebook. latest investment by KKR in Asia, valued Jio at Rs 4.91 lakh crore, is said to be largest investment by KKR in Asia. 

READ: Reliance Industries' Rs 53,125-cr Right Issue To Open May 20, Close On June 3

Rights issue

Last week, RIl anunced a Rs 53,125 crore rights issue which will be open for shareholders subscription on May 20 and close on June 2. Ambani's firm, on April 30, had anunced raising funds of Rs 53,125 crore by way of a 1:15 rights issue - India's biggest and first such issue by firm in nearly three decades.

One share will be offered for every 15 shares held at Rs 1,257, a 14 per cent discount to closing price for April 30. Reliance share price has since risen to Rs 1,458.90 (Friday's closing price) but rights issue price remains same. proposed rights issuance will be first by Reliance in three decades. Typically, cash-strapped companies use rights issues to raise money when y really need it. In se rights offerings, companies grant shareholders right, but t obligation, to buy new shares at a discount to current trading price.

READ: Reliance's Jio Platforms Gets 5th Investment; KKR's Rs 11,367cr Takes Total To Rs 78,562cr

last time Reliance tapped public for funds was in 1991 when it had issued convertible debentures. debentures were subsequently converted into equity shares at Rs 55 apiece. Ambani had in August last year unveiled plans to cut debt to zero by 2021. As part of this plan, RIL has been seeking strategic partnerships across its businesses while targeting to delever balance sheet. At end of March quarter, RIL had an outstanding debt of Rs 3,36,294 crore. It also had cash in hand of Rs 1,75,259 crore, bringing net debt position to Rs 1,61,035 crore.

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