Highlights
- The company has fixed the price band at Rs 1,065 to Rs 1,119 per equity share.
- Jio Platforms has recorded a GMP of Rs 206.
- No dividend in the last 3 fiscal years, Jio Platforms IPO says.
Jio Platforms IPO: Reliance Industries-backed Jio Platforms has clearly said in its Red Herring Prospectus (RHP) that it has not paid any dividend in the last three years and there is no guarantee that it will pay any in the future either. The much-awaited Jio Platforms IPO is all set to open on October 21 and close on October 23.
The company has fixed the price band at Rs 1,065 to Rs 1,119 per equity share. Jio Platforms Limited has recorded a grey market premium (GMP) of Rs 206.
What does the company say on dividend policy?
“In terms of the Dividend Policy, the declaration and payment of dividend (including interim dividend), if any, will be at the discretion of the Board and will depend on a number of internal and external factors,” the RHP said.
On what basis will the dividend be decided?
According to the RHP, the internal factors include “profit earned during the financial year, retained earnings, earnings outlook for next three to five years, expected future capital/liquidity requirements and any other relevant factors and material events.”
Company may retain all future earnings for growth
The company has made it clear that it may not pay dividend and may use the money for growth instead.
“Additionally, the Company may retain all our future earnings, if any, for making investments for future growth and expansion plans, for the purpose of generating higher returns for Shareholders,” the RHP stated.
“Accordingly, there is no guarantee that any dividends will be declared or paid in the future on the equity shares,” it added.
No dividend in the last 3 fiscal years
In the RHP, the company has disclosed its past dividend track record.
“We have neither declared nor paid any dividends on the Equity Shares in any of the three fiscal proceedings on the date of this Red Herring Prospectus, the three-month period ended June 30, 2026, and the period from July 1, 2026, until the date of this Red Herring Prospectus,” the company said.
The company has also flagged it as a risk factor for investors. “In this regard, see Risk Factors – 43. We may not be able to declare and pay dividends in the future on page 62,” it said.
The IPO Committee of Jio Platforms’ Board of Directors has approved a price band of Rs 1,065 to Rs 1,119 per share, with a face value of Rs 10 per equity share. The bidding window for anchor investors will open on October 19, ahead of the public issue.
According to regulatory filings by Reliance Industries, Jio Platforms plans to issue up to 27 crore fresh equity shares. The final issue size and expected listing date have not yet been specified in the cited filings.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)