New Delhi, 16 October (H.S.): The upcoming initial public offering (IPO) of Jio Platforms has generated considerable enthusiasm in the grey market, with its grey market premium (GMP) surging by approximately 84 per cent over the past two weeks. According to market observers, the GMP, which stood at around Rs 125 in the initial days, had climbed to Rs 230 as of October 16.
The sharp rise in the grey market premium indicates growing investor interest in the much-anticipated public offering. The company’s IPO is scheduled to open for subscription on October 21, with investors able to submit their bids until October 23.
For the mega IPO, the company has fixed a price band of Rs 1,065 to Rs 1,119 per share. Based on prevailing grey market indications, the shares could potentially list at a premium of more than 20.6 per cent over the issue price. The share allotment is expected to be made at the upper end of the price band.
Both retail investors and large institutional investors are reportedly showing considerable interest in the issue. Among foreign portfolio investors, prominent institutions such as GIC Pte., the Abu Dhabi Investment Authority and the Qatar Investment Authority are being discussed as potential participants. On the domestic front, institutions such as SBI Mutual Fund, Motilal Oswal and HDFC Mutual Fund could invest as anchor investors.
Based on the upper end of the price band, Jio Platforms’ overall valuation is estimated at approximately Rs 10.3 lakh crore. This would place the company among a select group of Indian corporations with market capitalisations exceeding Rs 10 lakh crore once its shares are listed on the stock exchanges. The group currently includes major companies such as Reliance Industries, Bharti Airtel, HDFC Bank, ICICI Bank and State Bank of India.
Following a successful listing of Jio Platforms, the combined market capitalisation of Reliance Group companies is expected to approach an all-time high of Rs 28.3 lakh crore. Reliance Industries currently remains India’s most valuable listed company, with a market capitalisation of approximately Rs 16.55 lakh crore.
Jio Platforms is the digital and technology arm of the Reliance Group. It houses Reliance Jio Infocomm, described in the report as India’s largest telecommunications service provider, with a subscriber base of more than 530 million.
Through the mega IPO, the company plans to issue 270 million new shares, which could raise approximately Rs 30,213 crore at the upper end of the price band. A substantial portion of the proceeds is expected to be used to repay existing debt and strengthen the company’s financial position.
The proposed offering is set to become the largest IPO in Indian corporate history, surpassing the previous record set by Hyundai Motor India’s Rs 27,800-crore IPO in 2024.
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Hindusthan Samachar / Jun Sarkar
