Jio Platforms, the digital and telecom subsidiary of Reliance Industries Ltd (RIL), is reportedly gearing up for its Initial Public Offering (IPO) this month. Market buzz suggests the offering could open for subscription between October 21-23, aiming to raise approximately Rs 31,000-32,000 crore, though an official announcement is still pending.
Jio Platforms IPO Set to Be India's Largest Offering
This massive offering is expected to become India's largest-ever primary issue, potentially valuing Jio Platforms at around Rs 11 lakh crore ($114 billion). At this valuation, it would rank as India's third-most-valued company, trailing only its parent RIL and rival Bharti Airtel Ltd, surpassing major players like HDFC Bank Ltd and ICICI Bank Ltd.
Shareholder Quota for Reliance Industries Investors
A significant feature of the upcoming Jio Platforms IPO is the reservation for existing shareholders of Reliance Industries. Investors who hold at least one RIL share by the specified eligibility date in the offer documents will be able to apply under a dedicated shareholders' category, in addition to the general HNI/retail categories.
Experts Divided on Buying RIL Shares for IPO Quota
The prospect of a reserved quota has led to discussions among investors about whether to purchase RIL shares solely to qualify for the Jio Platforms IPO. Harshal Dasani, Business Head at INVasset PMS, advises against this strategy. He warns that despite the quota, heavy oversubscription means owning even a single RIL share is unlikely to guarantee an allotment, likening it to a “lottery ticket” unless an investor finds RIL attractive on its own merits.
Conversely, Kranthi Bathini, Director of Equity Strategy at Wealthmills Securities, suggests that applying in two categories (retail/HNI and shareholder) could increase allotment chances, especially given the IPO's large size. However, Bathini stresses that investors should only pursue this if they believe in Jio Platforms' long-term potential and are prepared to hold the stock through market volatility, rather than just chasing a quick listing gain.
Grey Market Premium and Valuation Expectations
Even without an official announcement, Jio Platforms is reportedly commanding a strong Grey Market Premium (GMP) of Rs 175-180 per share, a rise from previous estimates of Rs 148-150. Market sources, which Business Today could not independently verify, anticipate a price band for the IPO in the range of Rs 1,100-1,200.
Disclaimer: This article provides market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.