Reliance Industries Shares Rally 3% After Jio Platforms Announces IPO Price Band

Reliance Industries Share Price: Shares of Reliance Industries Ltd (RIL) rallied nearly 3% in early trade on Thursday after its digital and telecom arm, Jio Platforms Ltd, announced the price band for its much-awaited initial public offering (IPO), which is set to become India’s largest-ever public issue.

At 12:25 pm, the Reliance Industries stock climbed 2.85% to trade at Rs 1,209.50 on the BSE. On the National Stock Exchange (NSE), it advanced 2.97% to Rs 1,209.50.

Jio Platforms has fixed the IPO price band at Rs 1,065-1,119 per share. At the upper end of the price band, the issue is expected to raise Rs 30,213 crore, surpassing Hyundai Motor India’s Rs 27,858.75-crore IPO in 2024, which currently holds the record for India’s largest public

offering.

The price band was approved by the IPO committee of Jio Platforms’ board at a meeting on Wednesday, according to a regulatory filing by Reliance Industries.

The IPO will open for subscription on Wednesday, October 21, and close on Friday, October 23. Bidding by anchor investors is scheduled for Monday, October 19.

According to the regulatory filing, Jio Platforms will issue up to 27 crore equity shares with a face value of Rs 10 each. The company will offer a discount of Rs 54 per share to eligible employees bidding under the employee reservation portion.

Investors will have to bid for a minimum of 12 shares and in multiples of 12 thereafter. At the upper end of the price band, the minimum investment for one lot will amount to Rs 13,428.

Why Jio Platforms IPO Is Different

While the size of the offering is set to create a new fundraising record, the structure of the issue sets it apart from India’s previous mega IPOs.

Jio Platforms’ IPO will comprise an entirely fresh issue of shares, with no Offer for Sale (OFS) component. This means the entire proceeds from the issue will go to the company, providing it with fresh capital, rather than being paid to existing shareholders selling their stakes.

In contrast, Hyundai Motor India’s Rs 27,858.75-crore IPO in 2024 was entirely an OFS by its South Korean parent, Hyundai Motor Company. Similarly, Life Insurance Corporation of India’s Rs 20,557.23-crore IPO in 2022 was an OFS through which the government sold part of its stake in the insurer.

At the upper end of its price band, Jio Platforms’ proposed issue will be around 8% larger than Hyundai Motor India’s record-setting offering and about 47% larger than LIC’s IPO.

The fresh issue structure makes Jio Platforms’ offering significant not just for its size but also for the capital it will bring directly into the company.

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