Shares of Reliance Industries Ltd., the Nifty 50 heavyweight, will be in focus on Thursday, October 15, after its unit, Jio Platforms, announced details for what will be the largest IPO in India’s history.
Jio Platforms, on Wednesday evening, announced that it will be issuing 27 crore shares as part of its IPO, which will be a complete fresh issue with no Offer For Sale (OFS) component.
Price band for the Jio Platforms IPO has been fixed between ₹1,065 to ₹1,119 per share. At the upper end of the price band, this will take the total IPO size to ₹30,213 crore, which will be higher than Hyundai Motor India’s 2024 issue of ₹27,870 crore, which was a complete OFS.
What Is In The Jio Platforms IPO For Reliance Industries Shareholders?
35% of the IPO size has been reserved for retail investors. 2.23 crore shares, worth ₹2,500 crore, in the IPO, have been reserved for existing shareholders of Reliance Industries. Cut-off date to determine the eligibility of those shareholders who can bid in the Jio Platforms IPO under the existing shareholder category has been fixed as October 14.
This means that investors who purchased shares of Reliance Industries, on or before Tuesday, October 13, will be classified as existing shareholders, and can bid under the shareholder quota as well. The maximum bid amount for them will be the same, ₹2 lakh, as is the case for retail investors. Those who purchased shares of Reliance Industries on October 14, will not be eligible to bid under the shareholder quota.
Reliance Industries had a total of 44.72 lakh small retail shareholders, or those with authorized share capital of up to ₹2 lakh, as per the BSE shareholding pattern for the June quarter. The September shareholding details are yet to be disclosed. These retail shareholders owned 7.16% of the company as of June 30.
While eligible employees of Jio Platforms have been given a discount of ₹54 per share, there is no such discount for existing shareholders of Reliance Industries.
Reliance Industries shares have remained a near-consensus “buy” among the analysts who track it, despite falling to a 52-week low recently. 30 out of the 31 analysts covering the stock have a “buy” rating, with a single solitary “sell” recommendation.
Shares of Reliance Industries ended 0.7% higher on Wednesday at ₹1,174.6, marking its second straight day of gains. The stock had snapped a four-day losing streak on Tuesday.