Reliance Jio IPO: Apply or not? Should you subscribe to issue after launch or wait for listing? What GMP signals?
Reliance Jio IPO: The much-awaited Jio Platforms IPO is all set to hit the primary market on Wednesday, 21 October. Reliance Industries digital subsidiary company, on Wednesday, filed its Red Herring Prospectus (RHP) with the Registrar of Companies, Gujarat, at Ahmedabad.
Jio Platforms IPO, which will remain open for subscription till Friday, 23 October, also announced the IPO price band at ₹1,065– ₹1,119 per equity share. The company is expected to raise between ₹28,755 crore and ₹30,213 crore through the public issue.
Jio Platforms IPO comprises a completely fresh issue of up to 27 crore equity shares, with no offer-for-sale (OFS) component. This means that existing shareholders will not offload any of their holdings through the public issue.
The shares are slated to make their stock market debut on 28 October and are proposed to be listed on both BSE and NSE, according to the draft papers.
The revised issue size is nearly 14% lower than the approximately ₹35,000 crore proposed in the draft papers.
Even after the reduction, the IPO is poised to become India's largest-ever public issue in rupee terms, surpassing Hyundai Motor India's ₹27,870 crore offering in 2024.
According to Jio's prospectus, investors can bid for a minimum of 12 shares, each with a face value of ₹10, and in multiples of 12 shares thereafter. The company has also offered a discount of ₹54 per equity share to eligible employees bidding under the employee reservation portion.
According to the prospectus, the company intends to utilise up to ₹27,500 crore from the IPO proceeds to repay certain borrowings of its material subsidiary, Reliance Jio Infocomm Ltd (RJIL), in line with its original plan.
Jio has appointed 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, among others, as book running lead managers
Reliance Industries currently owns a 66.43% stake in Jio Platforms. Meta Platforms holds a 9.98% stake through its affiliate, Jaadhu Holdings LLC, while Google International LLC owns 7.73%.
KKR & Co and Vista Equity Partners Management LLC each hold a 2.31% stake in Jio Platforms through their respective affiliate funds. Silver Lake owns 1.88%, followed by Mubadala Investment Co with 1.85%. General Atlantic and Abu Dhabi Investment Authority hold stakes of 1.34% and 1.16%, respectively.
After the date and price band announcement for its upcoming issue, the GMP trends of Jio Platforms IPO has continued to remain bullish, according to market observers.
The shares of Jio Platforms IPO are available at the GMP of ₹206 in the grey market, which is ₹12 lower from yesterday's GMP of ₹218, as per Investorgain.
Anuj Gupta, SEBI Registered Research Analyst, said that investors can consider subscribing to the Jio Platforms IPO, given the company’s expanding business operations and promising growth prospects, adding that the company's investments in telecom infrastructure, including tower connectivity, could further strengthen its network reach and service capabilities. Moreover, Jio’s focus on providing affordable internet connectivity compared with competitors could help it attract more users and expand its market share.
“With the growing demand for digital services and internet access, the company’s long-term growth outlook appears encouraging,” Gupta said.
Meanwhile, Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, also recommended investors to consider subscribing to the Jio Platforms IPO with a long-term investment horizon.
Ojha added that the company could be a potential wealth creator over the long term, backed by its strong presence in the telecom and digital services space and growth opportunities in areas such as AI, cloud and enterprise services.
However, he suggested investors should remain mindful of the IPO valuation and market risks before making an investment decision.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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