Reliance Jio Sets IPO Price Band at Rs 1,065 to Rs 1,119 in India's Largest Public Offer

Reliance Jio has fixed its initial public offer price range between Rs 1,065 and Rs 1,119 per share, setting up what will be the largest public offer in Indian history. The mega issue opens for subscription on October 21 and closes on October 23, aiming to mobilize around Rs 37,700 crore, or close to 4 billion dollars.

Offer Details and Use of Funds

The public offer is a fresh issue sale of 27 crore shares and has been valued at around Rs 10.3 lakh crore, with valuations spanning from Rs 9.8 lakh crore at the lower end to over Rs 11 lakh crore at the upper range. Out of the total proceeds, Rs 27,500 crore will go toward repaying debt, while the rest will fund general corporate purposes not exceeding 25 percent of the proceeds. The filing was made through a red herring prospectus with the Registrar of Companies.

Reservations and Investor Allocation

The issue includes dedicated reservations of equity shares worth up to Rs 500 crore for eligible employees and up to Rs 2,500 crore for eligible Reliance shareholders, including individuals and Hindu undivided families. Meanwhile, analysts point out that while the valuation is reasonable, anticipated growth may already be priced into the stock.

Context

Initial public offerings allow private companies to raise capital from the public by issuing shares on stock exchanges. Jio Platforms operates as the digital and telecom arm of Reliance Industries Limited, holding a massive subscriber base across the country.