RELIANCE RISES 2% TO BE AMONG TOP NIFTY GAINERS

Shares of Reliance Industries Ltd. were among the top Nifty gainers on September 4, rising around 2% as the heavyweight stock crossed its key 100-day moving average (100-DMA). The gains came after RIL’s digital and telecommunications arm, Jio Platforms Ltd., received regulatory clearance to proceed with its proposed initial public offering. The Securities and Exchange Board of India issued its observation letter during the week ended August 28, effectively clearing the way for the company to move ahead with the issue. Jio Platforms had filed its draft IPO documents on June 19. According to the draft prospectus, the offering will comprise up to 270 million new shares, representing an estimated 2.9% dilution of the company’s equity, based on Bloomberg calculations. The company plans to use the proceeds primarily to repay debt and for general corporate purposes. Of the funds raised, around Rs 27,500 crore is expected to be used to repay debt of Reliance Jio Infocomm Ltd. Jio Platforms, led by Akash Ambani, is reportedly targeting an IPO of around $4 billion. Economic Times reported on September 4, citing sources, that the offering could be launched by the end of October or in early November. The company is expected to finalise the IPO dates within the next couple of weeks. It would then begin with overseas roadshows before conducting investor meetings in India, according to the report.