The ₹30,213-crore initial public offering (IPO) of Jio Platforms, the digital services arm of Reliance Industries, is set to open for subscription on October 21, but the issue has already generated buzz in the grey market.
The grey market premium (GMP) of the Jio Platforms IPO has risen to ₹222, implying a premium of nearly 20% over the upper end of the price band of ₹1,119 per share. Over the past 13 sessions, the GMP has climbed from ₹148 to ₹222, according to InvestorGain data, indicating growing investor interest in the Reliance Industries group’s public offering.
However, grey market premiums are unofficial indicators of investor sentiment and do not guarantee the listing price or actual returns.
On Wednesday, Jio Platforms announced a price band of ₹1,065-₹1,119 per share for its IPO, which will open for subscription on October 21 and close on October 23. The anchor book will open on October 19, while the shares are scheduled to list on the BSE and NSE on October 28.
Key things to know about Jio IPO
The IPO comprises a fresh issue of 27 crore equity shares with a face value of ₹10 each, aiming to raise over ₹30,000 crore. This would make it India’s largest IPO, surpassing Hyundai Motor India’s ₹27,856-crore offering in 2024. 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 IPO lot size is 12 shares, requiring a minimum investment of ₹13,428 for retail investors at the upper end of the price band. 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 Reliance Industries 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.
Debt repayment to boost financial flexibility, says SBI Securities
Of the total IPO proceeds, ₹27,500 crore will be used to repay borrowings availed by Jio Platforms’ material subsidiary, Reliance Jio Infocomm Ltd (RJIL). According to SBI Securities, the proposed repayment is expected to reduce leverage and finance costs, strengthen cash flows and provide greater financial flexibility for future investments.
In a report, the brokerage said Jio Platforms’ future growth would be driven by tariff rationalisation, migration from 2G to 4G and 5G, rising data consumption, home broadband expansion, and greater enterprise adoption of cloud and digital solutions.
Additional monetisation opportunities could emerge from AI-led services, digital applications, satellite connectivity and the overseas deployment of the company’s proprietary technology platforms, it added.
“At the upper price band, the issue is valued at a post-issue FY26 P/E multiple of 34.4x and an EV/subscriber multiple of Rs 20,117, reflecting its scale, earnings growth, technology capabilities and long-term monetisation potential,” SBI Securities said.