Mukesh Ambani gives a Diwali gift to investors; to launch the country's largest IPO on Oct 21..

The Initial Public Offering (IPO) of digital services major Jio Platforms Ltd—expected to be the largest in the country—will open for subscription on October 21. According to the Red Herring Prospectus (RHP) filed on Wednesday, the IPO will close on October 23, with bidding for anchor investors scheduled for October 19. The company has reserved shares worth up to ₹500 crore for eligible employees and up to ₹2,500 crore for eligible shareholders of Reliance Industries Ltd (RIL). Individuals and Hindu Undivided Families (HUFs) who held public equity shares of RIL as of October 14 are eligible to apply under the shareholder reservation category, subject to applicable terms and conditions.

A Look at the Price Band and Valuation
Reuters previously reported that Jio Platforms is targeting a valuation of approximately $106 billion (roughly ₹10.3 lakh crore) and plans to raise around ₹30,200 crore at the upper end of the potential price band. This would surpass the 2024 IPO of Hyundai Motor India, which currently stands as India’s largest public issue.

According to reports, the price band has been set at ₹1,065–₹1,119 per share, though investors will await final confirmation. At this valuation, Jio would become one of India’s most valuable listed companies upon its market debut.

Analysts estimate that at the current valuation of ₹10.3 lakh crore, Jio would trade at approximately 12 times its projected FY28 EV/EBITDA, compared to a multiple of about 10.3 times for the Indian operations of Bharti Airtel (excluding Indus Towers). Abhinav Tiwari, a senior research analyst at Bonanza, noted in an ET report that, overall, the pricing appears to be fair to slightly conservative, rather than undervalued. This valuation leaves room for decent upside, provided there is growth in earnings and an increase in profitability driven by tariff hikes.

Details on the Reliance Jio IPO
The Jio IPO will consist entirely of a fresh issue of shares, with no ‘offer-for-sale’ (OFS) component from existing shareholders. This means that Reliance Industries and Jio’s strategic investors—including Meta, Google, Mubadala, and Saudi Arabia’s Public Investment Fund—are not expected to sell any of their shares in this offering. The proceeds from the IPO will go directly to Jio Platforms.

Earlier media reports suggested that some existing investors might increase their stakes in Jio Platforms as part of the IPO. Meta’s subsidiary, ‘Jaadhu Holdings,’ is the largest external investor with a 9.98% stake, followed by Google International, which holds a 7.73% stake.

Draft papers indicate that up to ₹27,500 crore of the net proceeds will be used primarily to repay or prepay debt associated with Reliance Jio Infocomm, while the remainder will be allocated for general corporate purposes. Jio Platforms encompasses Reliance’s telecom and digital businesses, including mobile services, fixed broadband, cloud, entertainment, enterprise technology, and AI services. As of March, the company had approximately 524 million (52.4 crore) subscribers.

According to reports, the Jio IPO has already attracted bids exceeding $20 billion from potential investors. It is reported that global investors such as Fidelity, Allianz, and Capital Group, along with other international and domestic institutions, have shown interest in this offering.

Reliance Jio IPO GMP
Interest in the grey market has surged even before the formal filing. Jio shares were trading at a premium of approximately ₹218—or 19%—implying a price of ₹1,337 per share (based on the assumption that the upper end of the IPO price band will be ₹1,119).

Jio is being positioned as much more than just a telecom company. Its business encompasses mobile services, fixed broadband, cloud, entertainment, enterprise technology, and artificial intelligence services.

Impact on RIL Shares
For Reliance Industries, this IPO could establish an independent market valuation for its most valuable growth business. If Jio is listed, investors will be able to value its digital platform separately, rather than viewing it solely through the lens of Reliance’s broader conglomerate structure—which also includes businesses like oil-to-chemicals, retail, and new energy.

However, the impact on RIL shares will depend on the final valuation, subscription demand, post-listing performance, and whether investors believe the IPO might help reduce the "holding-company discount" currently applied to Reliance. Analysts suggest that the scope for immediate value unlocking may be limited due to a small public float, as Reliance will continue to retain a majority stake in Jio even after the listing.

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