Jio Platforms becomes the second most valuable company after its stock market debut

Shares of Jio Platforms, owned by Mukesh Ambani, underwent their market debut. Despite overall stock market volatility, Jio Platforms shares were listed at a premium of over 21%. The company's shares were priced at 1358 rupees, exceeding the upper price band of 1119 rupees, providing investors with significant profit in a fragmented market.

Following its listing, Jio Platforms became the second-largest company in the country by market capitalization, trailing Reliance Industries Limited. Jio Platforms shares demonstrated an impressive start on the stock exchange on Wednesday.

On the NSE, Jio Platforms shares were listed at 1358 rupees, representing a rise of 21.40% compared to the IPO price of 1119 rupees. According to grey market premium data, Mukesh Ambani's shares entered the market.

Thanks to this debut, Jio Platforms also became India's largest telecommunications company and ranked second in the country by market capitalization.

As part of the IPO, the lot size for Jio Platforms was set at 12 shares, requiring investors to invest 13,428 rupees per lot. With an upper price band of 1119 rupees and a listing price of 1358 rupees, investors gained a profit of 239 rupees per share.

Considering the return on the entire lot, if an investor invested 13,428 rupees, their amount increased to 16,296 rupees after listing, resulting in a profit of 2868 rupees per lot.

It is worth noting that retail investors could apply for a maximum of 14 lots in the Jio Platforms IPO, which required an investment of 1,87,992 rupees. When calculating the profit for the maximum lot, this amount increased to 2,28,144 rupees after listing, meaning an instant profit of 40,152 rupees.

The digital and telecommunications company Jio Platforms, owned by Mukesh Ambani's Reliance Industries, is preparing for its Initial Public Offering (IPO). This offering is set to be the largest in the country's history, with a size exceeding 30,000 crore rupees. All details have been published, and active discussions are underway among investors. Therefore, it is crucial for investors to know all the specifics, including the price band, lot size, and employee discounts.

When will the Jio IPO take place?

For investors awaiting the Jio Platforms IPO from Mukesh Ambani's company, the answer to the first question is that the IPO will open to anchor investors on October 19. For retail investors, it will be available starting October 21, and applications can be submitted for three days, until October 23.

What is the size and price band?

The company has announced the size of the offering and the price band. Through the Jio Platforms IPO, the company plans to raise 30,213 crore rupees in the primary market. According to the offering size, this will be the largest IPO in the country to date. As for the price band, it is set at 1065–1119 rupees per share.

Is the Jio IPO the largest offering in the country?

The size of the Jio Platforms IPO is 30,213 crore rupees at the upper end of the price band, which unequivocally makes it the largest IPO in the country's history. Previously, Hyundai Motor India (27,870 crore rupees), NSE IPO (22,569 crore rupees), LIC IPO (20,557 crore rupees), and Paytm IPO (18,300 crore rupees) were listed on the stock market.

How many shares will the company issue?

Reviewing the details of the Jio Platforms IPO shows that within this offering, Mukesh Ambani's company will issue only 270 million new shares to investors. The face value of these shares is 10 rupees. The Jio IPO is a book-built issue.

How much money must investors invest?

Now, the most important question is how much money investors must invest in the Jio IPO. The company has set the lot size for retail investors at 12 shares. This means an investor must apply for at least this number of shares. Calculating based on the upper end of the price band, one lot will cost the investor 13,428 rupees. Retail investors can apply for a maximum of 13 lots.

Is there a quota for Jio-Reliance employees and shareholders?

The Jio IPO includes a reserved quota for company employees, and participating in the offering grants them a significant discount. According to the DRHP, the company offers employees a discount of 54 rupees per share. Thus, while the upper limit for retail investors is 119 rupees, for employees, it will be 1065 rupees. Additionally, there is a reserved quota for Reliance Industries shareholders.

When will the listing happen on the stock market?

After the opening on October 21 and closing on October 23, the allotment of shares to applicants will take place on October 26, and the date for fund refund and share credit is set for October 27. The Jio IPO listing itself on BSE-NSE is scheduled for October 28.

What profit can this IPO bring?

Signals regarding potential profits from the Jio Platforms IPO show positive momentum even before its opening. On Thursday, during the stock market closing, the GMP for the Jio IPO was around 20 percent. Based on the Jio GMP, a return of 218 rupees per share is currently projected.

What is the quota for retail investors?

Within the Jio Platforms IPO, the company has allocated 50 percent of the quota for Qualified Institutional Buyers (QIB) and 15 percent for NII. As for the retail investor quota, it is set at 35 percent.

How long has Ambani's company been issuing an IPO?

This group's IPO after Reliance Industries by Mukesh Ambani comes after a long time. No company from the Reliance group has gone public for listing on the stock exchange since 2008.