The Jio IPO is expected to remain open until October 23, while the anchor book could open on October 19. The shares are targeted to list on the stock exchanges on October 28, subject to market conditions.
The company has received encouraging feedback from foreign institutional investors (FIIs) and domestic investors during recent meetings, people familiar with the matter said.
Jio IPO: Key dates
The proposed timeline for the Jio Platforms IPO is:
Anchor book: October 19
IPO opens: October 21
IPO closes: October 23
Expected listing: October 28
The dates are subject to market conditions and could change depending on developments in financial markets.
“Jio is fairly close to launching its IPO, although market conditions and global developments will play a role in its timing,” one of the people said.
The person added that the regulatory process with the Securities and Exchange Board of India (SEBI) is largely complete, with the necessary approvals in place.
What is the Jio IPO size and pricing?
The final issue size, pricing and valuation of Jio Platforms have not yet been decided.
A decision on the IPO pricing is expected in the coming week after taking into account investor feedback and market conditions, the people said.
Jio Platforms had filed its draft red herring prospectus (DRHP) with SEBI in June. The market regulator issued its final observations on August 28, clearing the way for the company to proceed with the IPO.
The issue will comprise entirely of fresh shares, meaning the proceeds will go to the company rather than existing shareholders selling their holdings.
How will Jio IPO proceeds be used?
A large part of the money raised through the IPO is expected to be used to reduce debt.
Jio Platforms plans to use the proceeds primarily to repay or prepay, either fully or partly, around ₹27,500 crore of outstanding borrowings of Reliance Jio Infocomm, its telecom subsidiary.
The remaining funds will be used for general corporate purposes.
The final pricing decision is also expected to take into account the company’s objective of creating long-term value for new shareholders, according to people familiar with the matter.
Jio IPO investor allocation
Under the proposed issue structure, 50% of the IPO is earmarked for retail and high-net-worth individual (HNI) investors, while the remaining 50% is allocated to institutional investors.
Within the retail and HNI portion:
35% is intended for retail investors applying for shares worth up to ₹2 lakh.
15% will be divided between investors applying for more than ₹10 lakh and those investing between ₹2 lakh and ₹10 lakh.
The institutional portion will include an anchor book and a main institutional book.
Jio Platforms’ management wants retail investors to have meaningful participation in the IPO, the people said.
Foreign investors show interest in Jio IPO
Jio Platforms has held meetings with foreign institutional investors, with the response described as encouraging.
Domestic investor interest has also been strong and has exceeded expectations, according to people familiar with the matter.
The company is closely monitoring market conditions amid recent volatility in equities.
“Markets are somewhat volatile at the moment, but investors have indicated that this should not materially affect their demand or appetite to participate in the IPO,” the second person said.
However, the final decision on the timing and pricing will depend on market conditions and global developments.
Why Jio IPO is attracting investor attention
Investors are looking at Jio Platforms as more than a telecom company. The business has exposure to mobile connectivity, home broadband, enterprise technology and digital services, along with international opportunities.
Its telecom subsidiary, Reliance Jio Infocomm, had 524.4 million customers as of March 31, making it India’s largest telecom operator by subscriber base.
The company had 268.5 million 5G customers and was the largest 5G standalone operator outside China, according to information provided by Jio Platforms.
Jio also said it was the world’s largest fixed wireless access provider outside China, with around 15 million subscribers. Its subscriber base in this segment was about 1.5 times that of T-Mobile, according to the company.