Jio Platforms IPO To Be Without OFS, May List Among Top 3 Stocks at Rs 12 Lakh Cr Valuation

New Delhi: Digital services firm Jio Platforms’ initial public offering (IPO), expected to be India’s biggest issue to date, is likely to come without an offer-for-sale as none of the investors have expressed interest to either exit or dilute their holdings, sources aware of the development said.

Jio Platforms (JPL) may list among top-three stocks at a valuation of around Rs 12 lakh crore, they said.

“Based on interest received during the overseas roadshows, JPL IPO may list among top three stocks in terms of market capitalisation. It is expected to list at a valuation of around Rs 12-13 lakh crore,” a source said.

At present, top-three stocks in India are Reliance Industries Ltd, HDFC, and Bharti Airtel.

Another source said the issue will come without any offer for sale (OFS) as no investor has shown interest in diluting their stake.

The Securities and Exchange Board of India (Sebi) had issued its final observations on August 28. Jio Platforms had filed its draft IPO papers in June.

According to its draft prospectus, the company plans to issue up to 27 crore fresh equity shares, equivalent to about 2.9 per cent of its post-issue equity base.

The anchor round is likely to be held on October 19 and then the issue is expected to open for subscription from October 21-23.

Permanent employees of Jio Platforms, Reliance Industries Ltd (RIL) and Jio Platforms’ subsidiaries will get reservation in stock allocation.

The qualified institutional buyer (QIB) portion of the issue will be not more than 50 per cent of the net issue, while the non-institutional portion will be not less than 15 per cent of the net issue and retail portion will be not less than 35 per cent of the net issue, sources tracking the development said.

“Up to 60 per cent of the QIB quota can go to anchor investors, with part of that quota specifically reserved for mutual funds, insurers and pension funds,” the source said.

An email query sent to JPL did not elicit any reply.

The sources have indicated that the company may raise around USD 3.8 billion from the offer.

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