According to a report from Economic Times, Jio Platforms may raise Rs 37,000-38,000 crore from its IPO, while some unverified sources claim that the fundraise could be lower than expectations. Despite the ambiguity around the fundraise, Jio Platforms is set to become India's biggest-ever IPO, surpassing Hyundai Motor India's Rs 27,870 crore issue.

However, Jio Platforms is yet to take a final call on the size, pricing and valuation of its IPO, with a decision on the price band expected in the coming week after factoring in investor feedback and market conditions, according to reports citing sources. It filed its draft papers with SEBI in June, and the market regulator gave its final observations on August 28, clearing the way for the issue.

The IPO will consist entirely of fresh shares, meaning the proceeds will go to the company and not to existing shareholders. A large part of the funds raised is expected to be used to reduce debt, with Jio Platforms planning to repay or prepay, fully or partly, about Rs 27,500 crore of outstanding borrowings at Reliance Jio Infocomm, its telecom subsidiary.

The remaining amount will be used for general corporate purposes, while the final pricing decision is also expected to reflect the company’s aim of creating long-term value for new shareholders.

Under the proposed structure, 50 per cent of the offer has been earmarked for retail and high-net-worth individual investors, while the other 50 per cent will go to institutional investors. Within the retail and HNI bucket, 35 per cent is meant for retail investors applying for shares worth up to Rs 2 lakh.

Jio Platforms has held meetings with foreign institutional investors, and the response has been described as encouraging. Domestic investor interest has also been strong and has exceeded expectations, according to people familiar with the matter. The company is monitoring market conditions amid recent volatility in equities.

Investors are viewing Jio Platforms as more than a telecom company, given its presence across mobile connectivity, home broadband, enterprise technology and digital services, along with international opportunities. Reliance Jio Infocomm had 524.4 million customers as of March 31, making it India’s largest telecom operator by subscriber base.

Jio Platforms also said it had 268.5 million 5G customers and was the largest 5G standalone operator outside China. It further said it was the world’s largest fixed wireless access provider outside China, with about 15 million subscribers, or roughly 1.5 times the base of T-Mobile.