The primary market is set to witness a historic event next week, with Jio Platforms, the digital services arm of Reliance Industries, launching the country’s largest-ever initial public offering (IPO). Ahead of the issue opening next week, the Jio IPO’s GMP (grey market premium) surged over 18% after RIL announced the price band for the digital services company’s IPO.
The Jio Platforms IPO is currently trading at a grey market premium of around ₹206 per share, indicating an expected listing gain of 18.4% over the upper end of the price band. At the upper price band of ₹1,119 per share, the estimated listing price stands at ₹1,325, based on the latest GMP. However, grey market premiums are unofficial indicators of investor sentiment and do not guarantee the listing price or actual returns.
In an overnight development, Jio Platforms unveiled the IPO price band at ₹1,065–₹1,119 per share, looking to raise ₹30,213 crore at the upper end of the price band. The issue will open for subscription on October 21 and close on October 23, according to a regulatory filing by RIL. The anchor book will open for a day on October 19. Jio Platforms shares are set to make their debut on the BSE and NSE on October 28.
Jio IPO to be India’s largest public issue
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 available 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.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)