After a string of mega listings that left investors underwhelmed, Reliance Industries may be preparing a different playbook for the public debut of Jio Platforms, one that analysts say could reshape how India's biggest IPOs are priced and perceived. According to an earlier ET report, Reliance is reworking Jio Platforms' proposed listing structure from an offer for sale (OFS) to a fully fresh issue, after differences emerged with existing investors over pricing and valuation expectations.
The change, if implemented, would mark a sharp departure from several recent marquee public offerings, where existing shareholders largely used IPOs as an exit or partial monetisation route. India's two biggest consumer-facing listings in recent memory -- Hyundai Motor India and LG Electronics India -- were largely structured around shareholder exits.
While both attracted institutional demand, post-listing returns have not fully matched the hype that preceded their public debut, leading to wider debate around pricing discipline in billion-dollar offerings.
Jio's proposed shift could change that narrative
Instead of selling shares held by global investors, a fresh issue would mean all proceeds go directly into Jio Platforms. According to the ET report, around Rs 25,000 crore from the proceeds could be used to reduce debt, while the balance may support network expansion, AI infrastructure and digital service investments.
The move also comes after more than a month of discussions between Reliance and Jio's existing shareholders, including global technology firms, sovereign wealth funds and private equity investors.
Some investors were reportedly pushing for a higher valuation to maximise returns, while Reliance was said to be focused on ensuring reasonable pricing for public market investors and avoiding a weak listing. That could mean Jio comes to market at a valuation lower than the $133-154 billion range discussed earlier.
Paresh Bhagat, Chairman of Mangal Keshav Financial, said a fully fresh issue from a company of Jio's scale could send a strong message to the market.
"A fresh issue means capital going directly into the business, unlike many IPOs which are largely liquidity events for existing investors. That can improve investor perception because the market sees growth capital rather than shareholder exits," he said.
Bhagat added that if priced sensibly, Jio could broaden the market's ability to absorb mega listings and reset expectations for large consumer-tech and digital infrastructure IPOs.
Analysts say this also changes the equation for Reliance itself. Reliance currently owns about 67% in Jio Platforms, and a fresh issue would dilute all shareholders proportionately instead of only early investors selling stock.
That means Reliance's stake will come down marginally, but the market may finally get a transparent standalone valuation for the telecom and digital business, which has long remained embedded inside the conglomerate structure.
Abhinav Tiwari, Research Analyst at Bonanza, said the structure could improve listing performance if scarcity and pricing are managed well.
"In an OFS, money simply moves from new investors to old ones. In a fresh issue, every rupee raised goes into the business. That changes investor psychology. If valuation is realistic, it could lead to stronger listing sentiment," he said.
A successful Jio listing could become a template for the next wave of mega offerings, especially at a time when startups, consumer brands and digital infrastructure businesses are preparing public market debuts. If Jio lists with a structure that leaves room for public investors to make money -- rather than only rewarding existing shareholders -- it could restore confidence in India's billion-dollar IPO story.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
