Jio Platforms IPO Price Band Said to Be 1,065 to 1,119 Rupees, Targeting $107 Billion Valuation

Since Jio Platforms filed its draft IPO papers in June, the Mukesh Ambani-led digital services company has cleared its regulator and, according to people familiar with the matter, settled on a price range.

The band is 1,065 to 1,119 rupees per share, and the company is targeting a market value of as much as 10.3 trillion rupees ($107 billion), those people said. The information is not yet public. An email query sent to Jio Platforms did not elicit a reply, according to ET Now.

The numbers

At the top of the band, the offering would raise about 302 billion rupees, according to Bloomberg's calculations. That would keep it on track to become India's largest-ever IPO. Business Today reported that it would surpass Hyundai Motor India. ET Now's report said sources indicated the company may raise around $3.8 billion from the offer.

The draft prospectus says the company plans to issue up to 27 crore fresh equity shares, about 2.9% of its post-issue equity base.

No existing shareholders selling

Press Trust of India reported, citing sources, that the issue might come without an offer for sale, because none of the investors has expressed interest in either exiting or diluting their holdings.

Permanent employees of Jio Platforms, Reliance Industries and Jio's subsidiaries will get a reservation in the stock allocation, according to the report.

Sources tracking the development said the qualified institutional buyer portion will be not more than 50% of the net issue, the non-institutional portion not less than 15%, and the retail portion not less than 35%. Up to 60% of the QIB quota can go to anchor investors, with part of that reserved for mutual funds, insurers and pension funds, a source said.

The calendar

The Securities and Exchange Board of India issued its final observations on Aug. 28. The anchor round is likely to be held on Oct. 19, with the issue expected to open for subscription from Oct. 21 to 23, according to ET Now. Business Today, citing market sources, reported that the public issue opens Wednesday, Oct. 21, and closes Friday, Oct. 23, with a stock market debut targeted for Oct. 28.

Market sources also said Jio is likely to file its red herring prospectus next week, most likely on Monday.

Valuation and the grey market

A source quoted by PTI said that, based on interest received during overseas roadshows, the Jio Platforms IPO may list among the top three stocks by market capitalization, at a valuation of around 12 to 13 lakh crore rupees. That is above the 10.3 trillion rupee target tied to the price band. ET Now's report named the current top three as Reliance Industries, HDFC and Bharti Airtel, while Business Today said Jio would become India's third-biggest company by valuation, after Reliance and Bharti Airtel, so the exact ordering is not settled.

The grey market, an unofficial market for IPO allotments, is pricing in a pop. Business Today reported Jio shares commanding a premium of 175 to 180 rupees, suggesting a 16% listing gain over the upper end of the reported price band. At the beginning of this week, the premium was 145 to 150 rupees.

What comes next

The price band remains unconfirmed until the offer documents are filed. Whether the listing lands near the 10.3 trillion rupee target or closer to the 12 to 13 lakh crore rupees mentioned by PTI's source will be known after the targeted Oct. 28 debut.