Shares of Reliance Industries Ltd (RIL) rose as much as 2.85% to ₹1,209.50 on the BSE on Thursday after its digital services subsidiary, Jio Platforms, announced the price band for its much-anticipated initial public offering (IPO). The rally was in line with the broader market, with the Sensex and Nifty surging as much as 1.5% each amid firm global cues.
At the time of reporting, RIL shares were trading at ₹1,207, up 2.65% from the previous close of ₹1,175.95. The country’s most valued stock saw its market capitalisation rising to ₹16.33 lakh crore, with as much as 8.65 lakh shares changing hands over the counter.
In an overnight development, Jio Platforms fixed the IPO price band at ₹1,065–₹1,119 per share, targeting a fundraise of ₹30,213 crore at the upper end. According to a regulatory filing by RIL, the issue will open for subscription on October 21 and close on October 23, while the anchor book will open on October 19. Jio Platforms shares are scheduled to list on the BSE and NSE on October 28.
In the last year, Reliance Industries shares have underperformed the BSE Sensex, falling 23.3% year-to-date and 12.4% over the past year, compared with declines of 12.8% and 10%, respectively, for the benchmark. Over the past five years, RIL shares have slipped 1.3%, while the Sensex has gained 3.8%. However, over a 10-year period, RIL has delivered a 16.8% return, outperforming the Sensex’s 10.3% gain.
Jio Platforms IPO GMP surges 18%
Ahead of the issue opening next week, the grey market premium (GMP) for the Jio Platforms IPO surged above 18% following the announcement of the price band.
The IPO was trading at a grey market premium of around ₹206 per share, implying a potential listing price of ₹1,325, or an indicative gain of 18.4% over the upper end of the price band. However, grey market premiums are unofficial indicators of investor sentiment and do not guarantee the listing price or actual returns.
Jio Platforms will issue up to 27 crore equity shares with a face value of ₹10 each. At the upper end of the price band, the issue is expected to raise ₹30,213 crore, making it India’s largest public offering and surpassing Hyundai Motor India’s ₹27,856-crore IPO in 2024. At the lower end, the issue size would be ₹28,755 crore.
The offering values Jio Platforms at approximately ₹10.3 lakh crore, around 6.5 times Hyundai Motor India’s valuation of nearly ₹1.59 lakh crore at the time of its IPO.
The minimum bid lot is 12 shares, requiring an investment of ₹12,780 at the floor price and ₹13,428 at the cap price, excluding applicable charges. Eligible employees bidding under the employee reservation portion will receive a discount of ₹54 per share.
Jio Platforms has reserved shares worth up to ₹2,500 crore for eligible RIL shareholders and up to ₹500 crore for eligible employees. The shareholder reservation is open to eligible individuals and Hindu Undivided Families (HUFs) holding RIL shares as of October 14, subject to the conditions specified in the red herring prospectus.
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