By Admin 
- Jio Platforms gave draft papers to SEBI for IPO.
- Mahendra Nahata had helped Reliance in purchasing 4G spectrum.
- He bought 0.54% stake of Jio for Rs 48 crore in 2020.
- His share of Rs 48 crore can now become Rs 5800 crore.
Jio IPO News: Reliance Jio Platforms, the telecom wing of Reliance Industries Limited, has submitted draft papers to SEBI for its IPO. This IPO will undoubtedly benefit the company and its investors, but there is one person among them who is going to benefit 100 times more from this IPO. Well-known businessman and HFCL promoter Mahendra Nahata is being talked about here.
Who is Mahendra Nahata?
Mahendra Nahata is none other than the person who helped a lot in bringing Reliance Industries into the telecom sector. It was the year 2010, when Mahendra Nahata’s company Infotel Broadband Services had acquired 4G spectrum across India for Rs 12872 crore. Then Mukesh Ambani’s company Reliance bought 95% stake in it for Rs 4800 crore, which later became famous as Reliance Jio. Since then Nahata joined the board of directors of the company.
How will Rs 48 crore become Rs 5800 crore?
In the year 2020, Nahata’s family had bought 0.54% stake (about 4.78 crore shares) in Jio Platforms for just Rs 48 crore by converting Compulsory Convertible Debentures (CCDs) into equity at a face value of just Rs 10. Brokerage firm Motilal Oswal in its report has put the valuation of Jio Platforms at $114 billion (10.7 lakh crore) for the upcoming IPO. In such a situation, according to this valuation, the value of Mahendra Nahta’s stake in the company comes to Rs 5800 crore, which is equal to the total bumper profit of 121 times on his investment.
What else was mentioned in DRHP?
Jio Platforms filed its draft prospectus for the IPO last Friday, in which there is mention of issuance of 27 crore i.e. 270 million equity shares. With this proposed issue, Reliance Industries’ stake in Jio Platforms is expected to reduce from 66.43% to 64.5%.
Reliance has not yet disclosed its fund raising target or the price range for the IPO. However, it is being estimated that a large part of the amount received from this will be used for balance-sheet related work within the telecom group.
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