The primary market boom in India this year is far from over. After NSE, investors are now focused on to Jio Platforms’ initial public offering, which has already got the approval from Securities and Exchange Board of India.
The issue size is being pegged at around Rs 37,700 crore, although there is no official announcement yet. Market experts have projected an equity valuation of around Rs 11 lakh crore.
Reliance Industries holds around 66.4% in Jio Platforms. The proposed IPO will mark the beginning of a new phase of growth for the telecom and digital services company, Managing Director Akash Ambani said on Thursday, October 8. He said that the focus after listing will be on shareholder value and growth.
As a retail investor, here are two special categories that you should know before investing.
Of the total issue, not less than 35% shall be available for allocation to retail individual investors, also known as the retail portion. The allotment to each retail investor shall not be less than the minimum bid lot, subject to the availability of equity shares in the retail portion. The remaining available equity shares, if any, shall be allotted on a proportionate basis.
The unsubscribed equity shares in this portion, including spillover from the reserved categories, would be added to the non-institutional portion and thereafter to the portion reserved for qualified institutional buyers.
Resident Indian individuals, eligible non-resident Indians, and hindu undivided families (HUFs), either directly or in the name of the karta.
Equity shares will also be allocated to eligible employees applying under the employee reservation portion, and eligible shareholders of Reliance Industries, on a proportionate basis. RIL’s shareholders will bid through the portion reserved for them and will be subject to valid bids received from them at or above the issue price.
Unsubscribed equity shares under the employee reservation portion may be added to the RIL shareholder reservation portion and vice versa. The shares remaining unsubscribed thereafter would be added to the retail portion and the non-institutional portion.
Individuals and HUFs who are the public equity shareholders of RIL, excluding those who are not eligible to invest in the issue under applicable laws, rules, regulations and guidelines, as on the date of the red herring prospectus, which is yet to be released.
All eyes are now on the official announcement on the issue size, price band, and the IPO launch date. Market buzz indicates it could be launched over the next few weeks.