When Meta and Google invested in Jio Platforms in 2020, they paid Rs 488.34 for each share. The proposed initial public offering (IPO) now puts those holdings at more than twice their original acquisition price, with the upper end of the Rs 1,065-1,119 price band implying combined unrealised gains of nearly Rs 1 lakh crore for the two technology companies.
Meta’s investment vehicle, Jaadhu Holdings, owns 892.28 million shares in Jio Platforms, while Google International holds 690.85 million shares, according to the company’s red herring prospectus. At Rs 1,119 a share, Meta’s holding would be worth around Rs 99,846 crore, against an estimated investment cost of Rs 43,573 crore. Google’s stake would be valued at Rs 77,307 crore, compared with an investment cost of Rs 33,737 crore. The resulting paper gains are around Rs 56,272 crore and Rs 43,569 crore, respectively.
The gains are based on the IPO price and are not realised profits. Neither investor is selling shares in the offering. Jio Platforms is issuing 270 million new equity shares, which means the estimated Rs 30,200-crore proceeds will accrue to the company rather than its existing shareholders. The IPO opens on October 21 and closes on October 23.
The structure allows Jio Platforms to raise fresh capital while Meta and Google retain their exposure to the company’s future growth. The issue proceeds are largely earmarked for repaying or prepaying borrowings of Reliance Jio Infocomm, Jio Platforms’ material subsidiary, with the balance intended for general corporate purposes.
The two investments were part of Reliance Industries’ 2020 fundraising drive, which brought global technology companies and financial investors into Jio Platforms as it sought to expand beyond telecom connectivity into a broader digital services business. Meta’s investment was accompanied by a partnership with Jio, while Google announced a collaboration to develop affordable smartphones. The IPO will now give public market investors an opportunity to value the business separately, while providing a visible benchmark for the holdings of its early backers.