Key facts
- Evergrande has filed for bankruptcy protection in the U.S. under Chapter 15.
- The filing is part of a broader restructuring effort for the Chinese property giant.
- This development intensifies concerns about the stability of China's real estate sector.
- The company has been struggling with significant debt obligations.
- The Chinese property market has faced a prolonged downturn.
Reliance Jio, India's largest telecom and internet provider, is preparing to file its draft papers for an initial public offering (IPO), a move that could become the country's largest ever. Billionaire Mukesh Ambani announced that the company's board had approved the filing, which is expected to be submitted to India's markets regulator on Friday. The company aims to issue up to 270 million shares in the offering.
Jio, which has over half a billion subscribers, reported after-tax profits of 79.35 billion rupees on operating revenue of 382.59 billion rupees in the fiscal year ending March. The telecom giant has appointed Morgan Stanley and Goldman Sachs as lead bankers for the proposed offering. Market estimates suggest the IPO could value the company between $133 billion and $182 billion, reflecting strong investor interest in India's digital and connectivity market.
Launched in 2016, Reliance Jio has significantly transformed India's telecom sector by driving down data tariffs and promoting mobile broadband adoption. It has solidified its market leadership through substantial investments in its network and spectrum acquisitions. The company also holds the distinction of being the world's largest 5G fixed wireless access operator. Global technology and private equity firms, including TPG, KKR, Vista Equity Partners, and Silver Lake, have invested in Jio, with Google and Meta Platforms expected to retain their stakes.
The company is awaiting regulatory approval for a minimum public float of 2.5% for mega IPOs, a proposal forwarded by the Securities and Exchange Board of India (SEBI) to the finance ministry. The IPO structure is expected to include both primary and secondary share sales, allowing some existing investors to partially exit their holdings.