Jio Platforms sets price band for India's largest-ever IPO
What's the story
Jio Platforms Ltd. the telecom and digital services arm of Reliance Industries, is set to price its shares at ₹1,065-1,119 apiece, Bloomberg reported. The company is targeting a market valuation of up to ₹10.3 trillion ($107 billion). At the upper end of this price range, Jio's IPO could raise around ₹30,200 crore. If successful, it would be India's largest-ever IPO to date.
Launch details
Public subscription to open on October 21
The public subscription for Jio's IPO is scheduled to open on October 21 and close two days later.
The anchor book will open on October 19, with shares expected to start trading on October 28.
Despite falling short of some earlier expectations, this offering is still likely to surpass Hyundai Motor India Ltd.'s ₹27,800 crore share sale in October 2024, the country's biggest so far.
Prospectus details
Offering to value Jio at up to $107 billion
In June, Jio filed its draft prospectus for an offering of up to 270 million new shares, or about 2.93% of its post-issue equity capital.
The company was earlier looking for a valuation of around ₹11 trillion. Earlier estimates were even higher, between $130 billion and $170 billion at one point.
However, a recent selloff in Indian stocks has moderated pricing expectations for several domestic IPOs.
Valuation insights
Jio has enlisted 19 banks for share sale
In June, Motilal Oswal Financial Services pegged Jio's valuation at $115 billion-$118 billion while Dolat Capital valued the company at around $110 billion.
To facilitate the share sale, Jio has roped in 19 banks including Kotak Mahindra Capital Co., Morgan Stanley, Bank of America Corp., Axis Capital Ltd., BNP Paribas SA, and Citigroup Inc.