Jio Platforms IPO to open Oct 21: Check valuation, what’s in store for RIL shareholders?

Jio Platforms, the subsidiary of Mukesh Ambani-owned Reliance Industries, has filed the red herring prospectus for its initial public offering with the Registrar of Companies, Gujarat at Ahmedabad.

Reliance Industries holds around 66.4% stake in Jio Platforms. The issue size is unchanged, with a fresh issue of up to 27 crore equity shares, having a face value of Rs 10 each.

The offer will open for subscription on October 21 and will close on October 23, Reliance said today in a filing with the exchanges. Anchor investors can bid for the offer on Monday, October 19.

The offer includes reservation of equity shares of Jio Platforms for eligible employees worth up to Rs 500 crore. For the eligible shareholders of Reliance, including individuals and hindu undivided families, the reservation is up to Rs 2,500 crore.

Japanese brokerage Nomura had said Jio Platforms may set its IPO price band at Rs 1,065-1,119 per share. This could value the company at around $101 billion to $107 billion.

According to Nomura, the reported price band of Rs 1,065-1,119 per share would value Jio Platforms’ equity at Rs 9.8 lakh crore to Rs 10.3 lakh crore. After adjusting for debt, spectrum-related obligations, lease liabilities and the cash raised through the IPO, its estimated enterprise value (EV) would stand at around $113 billion to $118 billion.

As per a Motilal Oswal report, Bloomberg has reported that Jio Platforms is seeking an equity valuation of around Rs 11 lakh crore ($114 billion) for its IPO. Motilal Oswal says this is broadly in line with its own valuation of Rs 11.2 lakh crore.

Brokerage house Motilal Oswal in its report noted that the proposed valuation of Rs 11 lakh crore translates into nearly 12 times FY28 estimated enterprise value to earnings before interest, taxes, depreciation and amortisation (EV/EBITDA).