The IPO of Reliance Industries’ digital company Jio Platforms could benefit Facebook’s parent company Meta and Google. In the year 2020, the share price of these two companies investing in Jio could touch around ₹1.77 lakh crore at the upper price band of the IPO. Thus, both the companies can make a paper profit of approximately ₹99,841 crore on their initial investment. The special thing is that both the companies are not selling a single share in the IPO.
₹77,310 crore was invested in 2020
According to the IPO prospectus, Meta and Google acquired Jio platform shares in 2020 at a price of ₹488.34 per share. Now Jio has set a price band of ₹1,065 to ₹1,119 per share for the IPO. Investment value of both the companies increased significantly as per the upper price of ₹1,119.
Meta owns about 89.23 crore shares of Jio. The company invested approximately ₹ 43,573 crore in buying these shares. At the upper price band of the IPO, they could be worth around ₹99,846 crore. That means Meta can make a paper profit of approximately ₹56,272 crore. At the same time, Google owns about 69.09 crore shares of Jio. The company’s initial investment was approximately ₹ 33,737 crore. At the upper price of the IPO, these shares could be valued at around ₹ 77,307 crore. Due to this, Google is expected to make a paper profit of approximately ₹ 43,569 crore. The two companies together had invested around ₹77,310 crore. Now the total estimated value of his shares may be around ₹1.77 lakh crore. However, this is a paper profit. Real profits will be made only when companies sell their shares.
Money was invested during the Corona epidemic
Reliance Industries raised around $20 billion for Jio platforms during the Corona epidemic in the year 2020. Apart from Meta and Google, major investors such as Silver Lake, Vista Equity Partners, Mubadala Investment Company, General Atlantic, Public Investment Fund of Saudi Arabia, Abu Dhabi Investment Authority and TPG Capital participated in this investment.
While Meta and Google got shares at ₹488.34 per share, several investors including Public Investment Fund, KKR, Vista Equity Partners and Silver Lake were given shares at ₹549.31 per share. At a price of ₹1,119, these investors can also get a paper return of around 104%.
Jio’s IPO will open from October 21
Jio Platform’s IPO will open on 21 October 2026 and close on 23 October. The share allotment is expected to be finalized by October 26, while the listing date on NSE and BSE is October 28. Based on the IPO’s upper price band of ₹ 1,119, the Jio platform could be valued at around ₹ 10.3 lakh crore. The company is planning to raise approximately ₹ 30,213 crore through this issue. If it happens, it could become India’s largest IPO, surpassing Hyundai Motor India’s ₹27,900 crore IPO in 2024. The company will use ₹27,500 crore of this amount for loan repayment or prepayment of loans. The remaining amount will be used for general corporate needs.
