Key Points
- Reliance mobilising nearly 4.2 lakh employees across group companies to invest in Jio IPO
- Jio targeting valuation of up to ₹10.3 lakh crore in India’s largest-ever public offering
- October salaries released 15 days early to give workers access to investable funds
Reliance Industries has reached out to nearly 4.2 lakh employees across its group companies, encouraging them to invest in Jio Platforms’ initial public offering, which is set to become the largest in Indian capital market history when it opens for subscription on 21 October.
The conglomerate released October salaries approximately 15 days earlier than usual, giving workers access to funds ahead of the ₹30,200 crore IPO, citing people familiar with the matter who asked not to be identified because the information is private reported news agency Bloomberg. Employees were not told a reason for the early salary release, the people said.
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The mobilisation effort extends beyond simply informing staff about the offering. Teams have asked employees whether they or members of their families have the demat accounts required for electronic share trading, the people said. Those who do not have been encouraged to open them.
Reliance Industries has not officially commented on the development.
IPO structure
Jio Platforms is targeting a valuation of up to ₹10.3 lakh crore ($108 billion) and is looking to raise as much as ₹30,200 crore in the IPO, offering as many as 27 crore shares at ₹1,065 to ₹1,119 each, according to company filings.
The company has set aside as much as ₹500 crore worth of shares for eligible employees, who are being offered a discount of 5 per cent, the filings show. The IPO also includes a reservation of as much as ₹2,500 crore worth of shares for eligible Reliance Industries shareholders, according to the documents.
Reliance Industries has 4,19,911 employees, the second-largest workforce among India‘s listed companies behind Tata Consultancy Services, according to data compiled by Bloomberg. This includes 74,822 at Jio, according to its website.
Jio employees can apply through the employee quota, while other Reliance workers can bid in the retail category. Employees who are also Reliance Industries shareholders can bid through a portion reserved for such investors, the people said.
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By the numbers
Key figures from this story
- ₹30,200 crore
- Target IPO fundraise by Jio Platforms
- ₹10.3 lakh crore
- Target valuation for Jio Platforms
- 4.2 lakh
- Reliance employees encouraged to invest
The IPO is scheduled to open for subscription on 21 October and close on 23 October, with the anchor book opening on 19 October. Jio has drawn more than $20 billion in bids, and global investors including Fidelity Management and Research, Allianz SE and Capital Group have indicated interest, people familiar with the matter said.
For Reliance Industries, which has spent years building Jio into one of India’s largest digital businesses with over 48 crore subscribers, the IPO represents an opportunity to turn hundreds of thousands of employees and potentially their families into shareholders in the telecom and digital services arm.
Your Questions, Answered
When does the Jio Platforms IPO open for subscription?
The Jio Platforms IPO is scheduled to open for subscription on 21 October and close on 23 October. The anchor book opens on 19 October.
How much is Jio Platforms looking to raise in its IPO?
Jio Platforms is looking to raise as much as ₹30,200 crore by offering up to 27 crore shares at a price band of ₹1,065 to ₹1,119 per share.
What discount are Jio employees getting on IPO shares?
Eligible Jio employees are being offered a 5 per cent discount on IPO shares, with up to ₹500 crore worth of shares reserved for them.
How many Reliance employees are being encouraged to invest in the Jio IPO?
Reliance Industries has reached out to nearly 4.2 lakh employees across all group companies, encouraging them to consider investing in the Jio Platforms IPO.