Jio’s IPO price band may be ₹ 1,065-1,119: Plan to raise ₹ 30,200 crore, target of ₹ 10.3 lakh crore market valuation

Jio’s IPO could be the country’s biggest issue so far.

Reliance Industries’ telecom and digital services company ‘Jio Platforms Limited’ is preparing to launch the country’s biggest ever IPO. According to media reports, the company can set the price band of its shares in this initial public offering from ₹ 1,065 to ₹ 1,119 per share.

According to reports, Reliance Industries is targeting a market valuation of up to ₹10.3 lakh crore for its digital platform.

Target to raise Rs 30,200 crore

At the upper end of the price band, this IPO of Jio will raise around ₹30,200 crore. With this, it will become India’s largest IPO by breaking the record of Hyundai Motor India Limited’s share sale of ₹ 27,800 crore in October 2024.

Public issue will open between 21st and 23rd October

Anchor Book: Will open on 19th October.

Public Subscription: Starting from 21st October and closing on 23rd October.

Listing (Share Trading): Trading in the stock market is likely to start from October 28.

However, sources have confirmed that these discussions are still ongoing and changes in the price band, valuation and dates are possible depending on the market conditions. No statement has come out from Reliance Industries on this yet.

Softer valuation than before

Jio had in June filed a draft prospectus (DRHP) for the issue of 27 crore new shares, equivalent to about 2.93% of its post-issue equity capital. Earlier the company was expecting a valuation of around ₹11 lakh crore.

Initial discussions also suggested a valuation of $130 billion to $170 billion. However, due to the recent selloff in the Indian stock market, many companies have readjusted their IPO valuations.

Brokerage house Motilal Oswal Financial Services in June had estimated Jio’s valuation between $115 billion and $118 billion. Whereas Dolat Capital had estimated its valuation at $110 billion.

Responsibility assigned to 19 big banks

Jio has appointed 19 big investment banks to handle this mega share sale. These include big global and domestic names like Kotak Mahindra Capital, Morgan Stanley, Bank of America Corp, Axis Capital, BNP Paribas and Citigroup.

What is anchor book and price band?

Price Band: This is the minimum and maximum price range within which investors can bid for shares in an IPO.

Anchor Investor: These are institutional investors (like mutual funds or FIIs) who are allotted shares just a day before the IPO opens to the general public. This builds confidence in the market regarding the issue.

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