Jio Platforms Sets Price Band For Landmark Public Issue Starting Next Week

Details and Schedule

Jio Platforms will open its public issue for subscription on Wednesday, 21 October, with the bidding window closing on Friday, 23 October. The company set its price band at ₹1,065 to ₹1,119 per equity share. Through this public offering, the firm aims to raise between ₹28,755 crore and ₹30,213 crore. The share allocation features a completely fresh issue of up to 27 crore equity shares with no offer-for-sale component, meaning existing holders will not offload any shares. Investors can bid for a minimum of 12 shares and in multiples of that number thereafter, with shares having a face value of ₹10 each. Eligible employees can also claim a discount of ₹54 per equity share under a special reservation portion.

Size and Use of Funds

Despite the revised issue size being nearly 14 percent lower than the roughly ₹35,000 crore proposed in draft papers, this public offering stands to become India's largest-ever in rupee terms, surpassing the ₹27,870 crore offering by Hyundai Motor India in 2024. The company plans to use up to ₹27,500 crore from the proceeds to repay specific borrowings held by its material subsidiary, Reliance Jio Infocomm Ltd. The shares are slated to make their stock market debut on 28 October, listing on both the BSE and the NSE. Book running lead managers for the issue include Kotak Mahindra Capital Co., Morgan Stanley India Co., BofA Securities India Ltd, Axis Capital Ltd, BNP Paribas, Citigroup Global Markets India Pvt. Ltd, and Goldman Sachs (India) Securities.

Ownership and Market Signals

Reliance Industries currently owns a 66.43 percent stake in Jio Platforms, alongside significant holdings by global entities. Meta Platforms holds 9.98 percent through Jaadhu Holdings LLC, Google International LLC owns 7.73 percent, while KKR & Co and Vista Equity Partners Management LLC each hold 2.31 percent. Silver Lake owns 1.88 percent, Mubadala Investment Co holds 1.85 percent, General Atlantic holds 1.34 percent, and Abu Dhabi Investment Authority holds 1.16 percent. Meanwhile, grey market trends show the shares trading at a GMP of ₹206, down slightly from ₹218 the previous day. SEBI Registered Research Analyst Anuj Gupta and Kantilal Chhaganlal Securities VP Mahesh M Ojha both recommended considering the issue for long-term investment, pointing to expanding operations, digital demand, and growth in AI and cloud services, though Ojha advised keeping valuations and market risks in mind.

Context

Initial public offerings allow private companies to raise capital from the public by issuing new shares and listing on stock exchanges. Large public issues of this scale typically attract massive participation from both retail and institutional investors due to the widespread market reach of the companies involved. Grey market premiums serve as informal indicators of investor demand ahead of actual stock exchange listings.