Reliance Industries has decided to structure the Jio Platforms IPO as a fully fresh issue, dropping the offer-for-sale (OFS) component that was previously on the table. The shift means all IPO proceeds will flow directly into Jio Platforms rather than to existing shareholders cashing out.

In an OFS, selling shareholders, not the company, pocket the money raised. A fresh issue is the opposite: the company itself receives the funds and can use them for stated purposes like paying down debt or funding expansion. The distinction matters because it changes who benefits and how the balance sheet moves after listing.

Why the Change?

The trigger, according to the source, was a disagreement among investors over pricing. When existing shareholders want to sell at a price the market or other parties won't accept, an OFS becomes difficult to execute cleanly. Removing it sidesteps that conflict and lets the market set the post-listing price without the friction of a forced secondary sale baked into the deal structure.

Dropping the OFS also removes a potential overhang. When early investors sell large blocks at IPO, it can signal that insiders believe the stock is fully valued, which sometimes weighs on post-listing performance. A pure fresh issue sends a different signal: the company is raising capital to grow, not giving early backers an exit.

What Happens to the Money

Proceeds from the fresh issue are earmarked for debt repayment and business expansion, which are standard uses for a capital raise of this kind. Jio Platforms carries significant infrastructure and operational costs tied to its telecom and digital services business, so retiring debt would improve its interest burden and free up cash flow.

Reliance framed the structure as a way to protect retail investors, arguing that letting the market discover the price post-listing, rather than locking in a sale price for outgoing shareholders, is fairer to public buyers.

The IPO, when it arrives, would be one of the largest in Indian market history given Jio Platforms' scale. Watching the eventual valuation band, the size of the fresh issue, and whether any OFS element creeps back in closer to filing will be the key signals to track.