Jio Platforms has fixed the price band for its much-awaited IPO at Rs 1,065-1,119 per share, setting the stage for Mukesh Ambani's telecom and digital-services business to launch what could become India’s largest-ever IPO. The issue comprises a fresh sale of up to 27 crore equity shares of face value Rs 10 each.
At the lower end of the price band, Jio Platforms could raise Rs 28,755 crore. At the cap price of Rs 1,119, the IPO size would rise to about Rs 30,213 crore.
The anchor investor book is scheduled to open on October 19, while the public issue will open on October 21 and close on October 23, according to the company’s filing details reported by market publications. The company filed its red herring prospectus with the Registrar of Companies on October 14.
In the unofficial market, the GMP is around Rs 220, which indicates a healthy premium of 20% over the upper end of the price band.
The proposed price values Jio at a premium to where most large private investors entered in 2020, when several financial and sovereign investors invested at an equity valuation of about Rs 4.91 lakh crore. Google had invested at a lower equity valuation of about Rs 4.36 lakh crore. The IPO valuation, therefore, is more than double the level at which most outside investors came into Jio.
At the upper end of the price band, Jio Platforms is expected to command a valuation of about Rs 10.3 lakh crore, making it one of the most valuable Indian companies at listing. The IPO will also surpass Hyundai Motor India’s Rs 27,900 crore public issue in 2024, which is currently India’s largest IPO.
Analysts said Jio Platforms would command a post-issue market cap of about Rs 10.4 lakh crore, translating into a P/E multiple of around 34.6x FY26 consolidated earnings of Rs 30,049 crore.
"We view the pricing as reasonably fair, with a relatively conservative approach compared with earlier valuation expectations, rather than an outright bargain," said Paresh Bhagat, Chairman, Mangal Keshav Financial Services.
"Jio's leadership in India's telecom market, its large subscriber base, improving monetisation opportunities and expanding digital ecosystem justify a premium valuation. However, investors must also account for the capital-intensive nature of telecom operations, future network investments and the execution risks associated with newer digital businesses," Keshav said.
The offer includes a reservation of shares worth up to Rs 500 crore for eligible employees and up to Rs 2,500 crore for eligible Reliance Industries shareholders. Eligible RIL shareholders include individuals and HUFs who held public equity shares of Reliance Industries as of October 14, subject to applicable conditions.
That shareholder quota is one of the most closely watched parts of the IPO. Until now, public investors could get exposure to Jio only through Reliance Industries shares. The reservation gives eligible RIL shareholders a direct route to apply for Jio shares in a separate category.
Jio Platforms houses Reliance’s digital and telecom businesses, including mobile services, broadband, cloud, entertainment, enterprise technology and artificial intelligence-linked platforms. The IPO is being pitched as more than a telecom listing, with the company seeking to position itself as a broader consumer technology and digital infrastructure play.
For Reliance Industries, the IPO will create an independent market value for its biggest growth asset. RIL owns about two-thirds of Jio Platforms, and investors have long viewed a separate Jio listing as a key value-discovery event for the conglomerate.
