Jio Platforms IPO: Journey of Reliance Industries from First Indian Company to Get Listed on BSE to Becoming India’s Most Valuable Company

Mumbai, Oct 19: Jio Platforms IPO opens for anchor investor today. The ₹30,213 crore initial public offering (IPO) will make Reliance group most valuable company once the shares are listed after the IPO is listed on NSE and BSE.

Reliance Textile Industries Limited, the predecessor of today’s Reliance Industries Limited (RIL), became the first company to go public with an initial public offering (IPO) and got listed on the Bombay Stock Exchange (BSE) in January 1978.

The public offer, which opened on 15 November 1977 and closed on 17 November 1977, was priced at ₹10 per equity share and involved 28.20 lakh existing equity shares released by promoter-shareholders, including Dhirubhai H. Ambani and Natvarlal H. Ambani. The total value of the offer stood at ₹2.82 crore.

Financial Institutions Stipulated Two-Exchange Listing, Triggering ₹2.82 Crore Offer for Sale

The financial institutions, while sanctioning loans for the company’s last expansion project, stipulated that the company should take necessary steps to get its equity shares listed on two recognised stock exchanges. To satisfy this requirement, the company requested certain shareholders to release their existing shares to the public by way of an Offer for Sale.

The company entered into an agreement with the shareholders to release shares to the public, for which the Stock Exchange, Bombay, had intimated government approval for three tranches: an Offer for Sale of 28,20,000 equity shares of ₹10 each for cash at par before January 1978; a further Offer for Sale of 4,80,000 equity shares of ₹10 each to the members of the public within one year from the date of the first offer; and a further Offer for Sale of 1,00,000 equity shares of ₹10 each privately to the employees of the company during June/July 1978.

The application list for the Offer for Sale was opened on 15 November 1977 and closed at the close of banking hours on 17 November 1977. The offerors received overwhelming support from the investing public, resulting in applications for shares to the tune of 7.19 times the shares offered. The allocation basis was finalised within 30 days from the date of closure, i.e., 17 December 1977, in consultation with the Stock Exchange, Bombay.

The transfer formalities and issuance of share certificates were completed, and the shares were listed on the Bombay and Ahmedabad stock exchanges with effect from 23 January 1978.

Reliance Textile Industries’ ₹2.82 Crore Offer Subscribed 7.19 Times as 57,949 Investors Claim Shares

The public offer witnessed overwhelming demand, with applications received for approximately 7.19 times the number of shares offered. Following the offer, the company had 57,949 shareholders, a substantial investor base by the standards of that era.

According to the company’s annual report for 1976-77, the distribution of equity shares showed 56,129 shareholders holding up to 200 shares, 1,647 shareholders holding between 225 and 1,000 shares, 125 shareholders holding between 1,050 and 5,000 shares, and 48 shareholders holding above 5,000 shares.

The shares were listed on both the Bombay Stock Exchange and the Ahmedabad Stock Exchange with effect from 23 January 1978. The listing was undertaken to meet the stipulation of financial institutions that required the company to have its equity shares listed on two recognised stock exchanges.

The offer for sale was made pursuant to an agreement dated 24 October 1977, and the allocation basis was finalised within 30 days of the closure of the offer, in consultation with the Stock Exchange, Bombay.

First-Day Trading Sees Shares Touch ₹17-₹18, Marking 70-80% Premium Over ₹10 Offer Price

On its first day of trading on the BSE, Reliance Textile Industries shares traded at approximately ₹17 to ₹18 for a ₹10 paid-up share, representing a premium of 70% to 80% over the original offer price.

Based on the reported trading range, an investment of ₹1,000 in 100 shares at the offer price would have been valued at ₹1,700 to ₹1,800 on the first day. The transfer formalities and issuance of share certificates were completed, enabling the listing.

In the first year of listing, 1978, Reliance shares reached a high of ₹50, five times the par value of the share. In 1980, the stock hit ₹104, and in 1982, it reached a high of ₹186.

Reliance Textile Industries Reports ₹120.11 Crore Net Turnover and ₹250.35 Lakh Net Profit for 1977-78

For the financial period ended 31 December 1978 (a 15-month period following a change in accounting year from 30 September to 31 December), Reliance Textile Industries reported a net turnover of ₹120.11 crore, up from ₹66.93 crore in the previous year. The company’s net profit stood at ₹250.35 lakh, compared with ₹128.80 lakh in the preceding year.

Operating profit rose to ₹1,015.10 lakh from ₹432.58 lakh. The company’s gross profit for the period was ₹1,015.06 lakh against ₹436.02 lakh in the previous year. Exports improved to ₹1,227 lakh on a free-on-board (f.o.b.) basis, up from ₹621 lakh in the previous year. Production of crimped and twisted yarn increased to 2,761 tonnes from 1,763 tonnes, while finished fabric production rose to 238.46 lakh metres from 133.81 lakh metres.

The company also accepted fixed deposits from shareholders and the public for the first time, receiving ₹3.19 crore within five months.

Interim Dividend of ₹1.25 per Share Declared; Final Dividend of ₹1.50 per Share Recommended

An interim dividend of ₹1.25 per share on 54,51,100 equity shares of ₹10 each was declared and paid out of the profits of the current period, amounting to ₹74,38,875. The directors recommended a final dividend of ₹1.50 per share on 59,51,100 equity shares of ₹10 each, amounting to ₹89,26,650. Additionally, a dividend of ₹8.77 per share was recommended on 30,000 11% Cumulative Redeemable Preference Shares of ₹100 each, amounting to ₹2,63,100.

The company transferred ₹250.30 lakh to the General Reserve and ₹240 lakh to the Investment Allowance Reserve. The company also issued and allotted 30,000 11% Cumulative Redeemable Preference Shares of ₹100 each to the General Insurance Corporation of India and its subsidiaries on 16 March 1978.

Expansion Programme Completed as Company Sets Up New Worsted Spinning Unit Costing ₹18.50 Crore

The company completed its expansion programme as per schedule, which increased its yarn processing, weaving, printing, and fabrics processing capacities. The company also took on hand the setting up of a new unit for manufacture of man-made fibre yarn on the worsted system at the existing site of the plant. The total cost of this project was estimated at ₹18.50 crore, with effective steps already taken to implement it.

The company had earlier arranged with financial institutions for providing financial assistance to the extent of ₹857 lakh for its expansion project of ₹1,250 lakh to increase its yarn processing, weaving, printing, and fabrics processing capacities. The balance amount was to be met from internal resources.

The assistance comprised: issue of 30,000 11% Cumulative Redeemable Preference Shares of ₹100 each to General Insurance Corporation and its subsidiaries (₹30 lakh); issue of debentures to Unit Trust of India (₹35 lakh); foreign exchange loan from ICICI (₹239 lakh); deferred payment facility from foreign machinery supplier (₹118 lakh); and rupee term loans from Industrial Development Bank of India (₹185 lakh), Life Insurance Corporation of India (₹125 lakh), Industrial Finance Corporation of India (₹100 lakh), and General Insurance Corporation and its subsidiaries (₹25 lakh), totalling ₹435 lakh.

The company had already obtained money towards preference share capital, issuance of debentures, deferred payment facilities from machinery supplier, and bridge loan against the term loan. The expansion programme of the weaving and processing division was completed before the end of the last financial year, and the balance part was expected to be completed by the middle of the current financial year.

To finance the new worsted spinning plant, financial institutions approved a foreign exchange loan of ₹411 lakh, a rupee loan of ₹300 lakh, a public issue of partially convertible redeemable debentures of ₹700 lakh, and a right issue of a minimum of ₹63 lakh (face value). The company also obtained a term loan of ₹200 lakh from its bankers under the Reserve Bank of India’s scheme for import of capital goods.

The financial institutions also agreed to exercise their right to convert up to 20% of the loan amount aggregating ₹470 lakh sanctioned by them for the last expansion programme into equity shares of the company of the face value of ₹94 lakh at par during the period from 1 October 1978 to 30 September 1980.

Reliance Textile Industries’ 1977 public offer of 28.20 lakh shares at ₹10 each raised ₹2.82 crore and was subscribed 7.19 times, listing on the BSE and Ahmedabad Stock Exchange on 23 January 1978. The company reported a net turnover of ₹120.11 crore and net profit of ₹250.35 lakh for the 15-month period ended 31 December 1978, with exports reaching ₹1,227 lakh. The directors recommended a final dividend of ₹1.50 per share on 59,51,100 equity shares, amounting to ₹89,26,650. The company’s expansion into a worsted spinning plant was estimated at ₹18.50 crore.

Jio Platforms IPO Dates, Price Band and Lot Size

The IPO is scheduled to open on 21 October and close on 23 October 2026. Allotment is expected on 26 October, while refunds and credit of shares are scheduled for 27 October. The tentative listing date on the BSE and National Stock Exchange (NSE) is 28 October 2026.

The minimum application is 12 shares, amounting to ₹13,428 at the upper price band. The shares have a face value of ₹10 each. The issue is entirely a fresh issue, with no offer-for-sale component.

Source:

• https://www.ril.com/sites/default/files/2023-01/1977-1978.pdf
• https://www.ril.com/sites/default/files/2023-01/1976-1977.pdf