The grey market premium (GMP) of the proposed initial public offering of Jio Platforms Ltd, the digital services arm of Reliance Industries, has been moving higher in recent sessions, indicating strong investor interest in the issue.
As of Monday, the GMP stood at ₹160, according to market sources. It was higher than the ₹145 and ₹120 traded in the last two sessions. It should be noted that grey market trends are unofficial and can change before the IPO opens.
To be sure, grey market prices are unofficial and do not necessarily reflect the IPO’s final valuation, while the final price band is set by the merchant bankers after considering multiple factors.
The higher GMP comes as Jio Platforms completes meetings with investors across the US, UK, Dubai, Hong Kong and Singapore. The issue is set to surpass Hyundai Motor India‘s $2.9 billion listing in 2024, while the National Stock Exchange of India made its market debut last month after a $2.3 billion IPO.
First IPO from Relaince group in nearly two decades
The telecom major is set to launch its initial public offering (IPO) on October 21, seeking to raise about $3.8 billion in what is set to be India’s biggest listing, Reuters reported, citing sources.
Following the DRHP filing in June, Jio Platforms received a key regulatory clearance in August, when the Securities and Exchange Board of India (SEBI) issued its observation letter on the company’s DRHP for the proposed IPO.
The company plans to issue up to 27 crore fresh equity shares, representing about 2.9% of its post-issue paid-up equity capital. The issue price will be determined through the book-building process in accordance with SEBI regulations.
The price band and other key details, including lot size and issue reservations, are yet to be announced.
The shares are expected to be listed on both the NSE and BSE. The company is expected to seek a valuation of $143–146 billion, equivalent to at least ₹12 lakh crore, according to banking and other sources cited by PTI.
The proposed listing of Jio Platforms would mark the first public offering by the Reliance Group in nearly two decades and the first consumer-facing business within the conglomerate to be taken public.
Proceeds from the offering will largely be used to repay debt owed by its telecom division. Jio Platforms, which counts Meta and Google among its major foreign investors, also runs AI, cloud and enterprise network businesses.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
