InvestorQ : how can one invest in Jio IPO from India? Why is reliance choosing to open IPO overseas?
Rohit Kashyap made post

how can one invest in Jio IPO from India? Why is reliance choosing to open IPO overseas?

Answer
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Tanu Shukla answered.
4 months ago


For now, there’s no such information available on Jio’s IPO in India. This has been in the news that RIL is looking for listing JIO on global stock exchanges without listing the same in India. There was a recent announcement by Finance Minister Nirmala Sitharaman that soon there will be regulation under which companies could be able to list themselves on global stock exchanges without simultaneous listing on Indian stock exchanges. RIL would wait for its listing until then.

RIL’s Jio, being a telecom company, after the merger with Facebook and other major technology giants is looking to set foot on Nasdaq (technology-based listing).

This is a very thoughtful action by RIL as it already has a substantial Indian customer base and by listing itself globally it could mark its impression worldwide. There will be foreign shareholders in the company and it could actually get more price of its shares in the global market. Also, it would have been difficult for RIL to set foot in global markets if the collaboration with Facebook has not taken place. Now, they have the name of a company that is universally accepted, which means a huge customer base without too much effort on the company’s part.

If RIL lists itself in the global markets, it would be a complete departure from RIL’s core belief of enhancing the existing investor’s value. However, a global listing would provide better liquidity to absorb a listing of Jio’s size, as compared to Indian markets. Therefore, a little departure from common belief was necessary for the Jio platform.