Summary of this article
Jio Platforms plans to use up to Rs 27,500 crore to repay borrowings
Its net debt stood at around Rs 9,539 crore as of June 2026
Deferred payments and lease liabilities will remain significant after the proposed repayment
Jio Platforms is moving towards becoming a net debt-free company as it prepares to use the proceeds from its Rs 30,213-crore initial public offering (IPO) to reduce borrowings. Chairman Akash Ambani said at the IPO press conference on October 15, 2026 that the entire issue proceeds would go towards reducing debt and strengthening the company’s balance sheet as it prepares for its next phase of growth.
“All our IPO proceeds go towards reducing our debt,” Ambani said, adding that Jio was “heading to be a net debt-free company”.
However, the company’s red herring prospectus (RHP) specifies that up to Rs 27,500 crore of the net proceeds will be used to repay or prepay borrowings of its material subsidiary, Reliance Jio Infocomm (RJIL). The remaining proceeds are earmarked for general corporate purposes.
Jio Platforms has fixed the IPO price band at Rs 1,065-1,119 per share. The issue will open on October 21 and close on October 23. At the upper end of the price band, the fresh issue of 270 million shares will raise Rs 30,213 crore, valuing the company at around Rs 10.3 lakh crore.
Most Of Jio’s Debt Sits With Its Telecom Subsidiary
Jio Platforms had consolidated borrowings of Rs 61,372.20 crore as on June 30, 2026, according to its RHP. RJIL accounted for Rs 59,140.20 crore in fund-based borrowings, while other subsidiaries had Rs 2,997.3 crore. The parent company had no outstanding fund-based borrowings against its working-capital facilities.
The proposed repayment will primarily reduce debt at RJIL, which runs Jio’s telecom business.
If Jio uses the full Rs 27,500 crore for repayment, its consolidated borrowings could fall to around Rs 33,872 crore, assuming no other changes.
This is an indicative estimate based on the June 30, 2026 figures, not a company forecast of its post-IPO debt.
The RHP also lists external commercial borrowing facilities with a combined outstanding amount of about Rs 29,917 crore as on June 30, 2026. Raised between March 2022 and June 2023, these loans are scheduled to mature in 2028. The proposed repayment is smaller than the combined outstanding amount of these facilities.
Cash And Investments Offer A Cushion
Gross borrowings do not reflect Jio Platforms’ full financial position. As on June 30, 2026, the company had cash and cash equivalents of Rs 19,026.80 crore and current investments of Rs 32,806.30 crore.
Together, these amounted to Rs 51,833.10 crore, against consolidated borrowings of Rs 61,372.20 crore. Based on these figures, net debt stood at around Rs 9,539 crore.
Jio Platforms’ net leverage also declined from 0.88 times in FY24 to 0.71 times in FY25 and 0.36 times in FY26.
The planned repayment could reduce interest expenses and improve cash available for future investment. However, the final impact will depend on the amount actually repaid, the borrowing costs of the loans settled, and the cash balance after the issue.
Debt Reduction Comes As Jio Looks Beyond Network Expansion
Jio has already invested heavily in building its 5G network and technology infrastructure. Ambani said the company reported earnings before interest, depreciation, and amortisation (Ebitda) of around Rs 76,000 crore in FY26, with a three-year growth rate of 17.80 per cent.
The company now aims to generate more revenue from its subscriber base through 5G services, digital applications and artificial intelligence (AI) offerings, rather than relying only on higher mobile tariffs.
“We always have the ability to take up prices, but what we want to do is to really deliver more services to our customers,” Ambani said.
The shift towards monetising its existing investments could support cash generation, although the extent of the benefit will depend on customer uptake, revenue growth, and the cost of developing new services.
Jio’s Long-Term Obligations
Even after repaying the proposed debt, Jio Platforms will still have substantial payment obligations. Its RHP shows deferred payment liabilities of Rs 1,04,513.70 crore as on June 30, 2026, separate from its borrowings. Of this, Rs 77,700.10 crore is due after five years.
The company also had lease liabilities of Rs 13,735.90 crore. In addition, it had Rs 9,038.90 crore in estimated capital expenditure contracts yet to be executed, for which provisions had not been made.
These obligations will add to Jio’s cash requirements as it continues to invest in its network and develop new digital services. The proposed repayment could bring Jio closer to the net debt-free position Ambani has outlined. However, investors will need to look beyond the reduction in borrowings and assess the company’s remaining cash, debt and long-term payment commitments as it funds its future growth.
The shares are expected to list on October 28, 2026.
