Jio Platforms IPO Set to Launch on October 21, 2023
Jio Platforms is gearing up for India's largest IPO, with a potential valuation of $137 billion and a launch date set for October 21.
Jio Platforms aims to raise approximately $3.8 billion through its IPO.
The IPO will include a reservation for existing Reliance shareholders.
The expected share price band is estimated between ₹1,300 and ₹1,450.
Jio Platforms, a subsidiary of Reliance Industries, is on the verge of launching what could become India's largest initial public offering (IPO) on October 21, 2023. The company is expected to file its final offer documents with the Securities and Exchange Board of India (SEBI) in the week starting October 12, following the completion of its overseas roadshows. This IPO marks a significant milestone for Reliance, being its first public offering since 2008 and the first for a consumer-focused business within the conglomerate.
The anticipated IPO is projected to raise around $3.8 billion, with plans to issue up to 27 crore fresh equity shares, which would represent approximately 2.9% of the company's post-issue equity base. Jio Platforms has experienced a robust financial performance, reporting a 15% increase in profit after tax to ₹30,053 crore for FY26, alongside a 14.5% rise in revenue to ₹1,46,885 crore. The IPO comes at a time when India's primary market is witnessing a resurgence, with numerous offerings being launched since July.
Currently, the grey market premium (GMP) for the Jio Platforms IPO stands at ₹150, indicating stable investor sentiment. The GMP has shown minimal fluctuations in recent sessions, suggesting a consistent outlook among investors. The expected listing date for the shares on stock exchanges is October 28, 2023. The company has yet to officially announce the price band for the IPO, but market sources estimate it to be between ₹1,300 and ₹1,450 per share.
In a bid to cater to existing shareholders, Jio Platforms will include a reservation category for Reliance Industries (RIL) shareholders. To qualify, shareholders must hold at least one share in their demat account on the record date, which is yet to be announced. This reservation allows eligible shareholders to apply under both the reserved and regular retail categories, although they must remain vigilant about the final terms outlined in the Red Herring Prospectus (RHP).
As the IPO approaches, Jio Platforms is expected to utilize a significant portion of the proceeds to repay approximately ₹27,500 crore in borrowings owed by its subsidiary, Reliance Jio Infocomm Ltd. The remaining funds will be allocated for general corporate purposes. Investors are advised to await the final RHP for confirmation of the price band and additional details regarding the offering.
