Jio Platforms IPO: Price Band, Rs. 30,000 Crore Issue And Rs. 10.3 Lakh Crore Valuation; What We Know

Reliance Industries-backed Jio Platforms is reportedly preparing for what could become India's biggest-ever initial public offering (IPO), with Bloomberg reporting a price band of Rs. 1,065- Rs. 1,119 per share and a potential valuation of up to Rs. 10.3 lakh crore or $107 billion.

The proposed Jio Platforms IPO could involve the issue of up to 27 crore fresh shares, potentially raising around Rs. 28,755 crore at the lower end and Rs. 30,213 crore at the upper end of the reported price band.

However, these details have not yet been officially confirmed by Jio Platforms or Reliance Industries. The final price band, issue size and other IPO details will be known once the company's Red Herring Prospectus (RHP) is filed.

Jio Platforms IPO Price Band

According to the Bloomberg report, Jio Platforms is set to price its IPO between Rs.1,065 and Rs. 1,119 per share.
At the upper end of Rs. 1,119, the company could command a valuation of approximately Rs. 10.3 lakh crore, or $107 billion.
The reported valuation is lower than some of the figures discussed earlier for the much-awaited Jio IPO. Earlier reports had suggested that Reliance was looking at a valuation of around Rs. 11 lakh crore.

Jio IPO Could Raise Over Rs.30,000 Crore

The proposed Jio Platforms IPO is expected to be a 100% fresh issue, with up to 27 crore new shares being issued.
At the reported price band, the calculation works out to Rs. 1,065 per share around Rs. 28,755 crore. Rs. 1,119 per share around Rs.30,213 crore

If the issue goes ahead at the reported upper-end size, the Jio Platforms IPO could raise more than Rs. 30,000 crore, making it the largest IPO in India's history.

One of the key features of the proposed Jio Platforms IPO is that the issue is reportedly structured entirely as a fresh issue.
This means existing investors are not expected to sell their shares as part of an offer for sale (OFS).

Companies such as Meta and Google, which have invested in Jio Platforms, are therefore not expected to sell their holdings through the proposed IPO.

Jio Platforms IPO Valuation

At the reported upper price band, Jio Platforms could be valued at around Rs. 10.3 lakh crore or $107 billion. This is below some of the earlier valuation expectations for the company.

In June, Motilal Oswal had valued Jio Platforms at around 115-118 billion, while Dolat Capital had estimated its valuation at approximately $110 billion.

The reported IPO price band therefore puts Jio's valuation at or slightly below some of these analyst estimates.
Jio IPO Shareholding And Reservation

The proposed IPO structure reportedly provides for the following investor reservation qualified Institutional Buyers (QIBs) is 50% and Retail investors is 35% and High Net-Worth Individuals (HNIs)/Non-Institutional Investors is 15%.

The company is expected to issue shares with a face value of Rs. 10 each. Jio Platforms is expected to list its shares on both the BSE and NSE. KFin Technologies is the reported registrar to the issue.

The company has also reportedly enlisted 19 banks for the proposed share sale.

Jio Platforms IPO Date

The official Jio Platforms IPO dates have not yet been announced.

Some IPO tracking platforms have listed October 21 to October 23 as the tentative subscription period, with allotment potentially taking place on October 26 and listing on October 28.

However, these dates should be treated as tentative until Reliance Industries or Jio Platforms officially announces them through the final IPO documents.

The anchor bidding date, IPO lot size, minimum retail investment and other important details are also yet to be officially confirmed.

Jio IPO Grey Market Premium

There have also been reports of a Jio IPO grey market premium (GMP) of around Rs. 160- Rs. 170.
At the reported upper price band of Rs. 1,119, a Rs. 160-Rs. 170 premium would indicate a potential premium of roughly 14%-15%.