Jio Platforms IPO price fixed at Rs 1,119 after 22x subscription; Rs 10.3 lakh crore valuation ahead of listing

The issue price was finalised on Monday, after Jio Platforms' Rs 30,188-crore IPO closed on Friday with an overall subscription of 22.2 times. The IPO attracted a combined demand across the public issue and the anchor book exceeded Rs 7.4 lakh crore, or approximately $78 billion. The number of applications approached 1.39 crore. The strong response sets the stage for Jio Platforms to enter the ranks of India's three largest listed companies by market capitalisation.

Jio Platforms' public issue opened for subscription on October 21 and closed on October 23, attracting strong demand from institutional and other investors. The IPO was fully subscribed within 100 minutes of opening, making it the fastest fully subscribed public issue in Indian history, according to the reported subscription figures. The qualified institutional buyers (QIB) portion, worth Rs 5,500 crore, was fully subscribed within the first 10 minutes.

By the close of bidding, investors had subscribed to 22.2 times the shares on offer, with total demand across the public issue and anchor placement exceeding Rs 7.4 lakh crore. At Rs 30,188 crore, Jio Platforms' offering surpasses Hyundai Motor India's Rs 27,859-crore IPO in 2024, making it India's largest public issue. Jio Platforms shares are scheduled to list on the BSE and NSE on Wednesday, October 28.

At the final issue price of Rs 1,119 per share, the company commands an implied equity valuation of around Rs 10.3 lakh crore, potentially placing it among India's top three listed companies by market capitalisation. The listing is also expected to make Reliance Group India's largest listed business group by aggregate market capitalisation. Unlike several previous mega IPOs, Jio Platforms' offering comprises entirely fresh shares, with no offer for sale by existing shareholders.

The company had earlier earmarked up to Rs 27,500 crore of the net IPO proceeds for repayment or prepayment of borrowings at its subsidiary Reliance Jio Infocomm, with the balance intended for general corporate purposes. At the IPO press conference on October 15, Chairman Akash Ambani said Jio was heading towards becoming a net debt-free company, highlighting the planned reduction in borrowings as an important step in strengthening its balance sheet.

Brokerages including Motilal Oswal Financial Services and Religare Broking have previously identified the IPO as a potential catalyst for unlocking value at RIL through independent price discovery for its digital business.