No Free Jio Shares for Reliance Investors!

Reliance investors and the market have long been eagerly awaiting the announcement of the Jio Platforms IPO. The announcement has now been made. This is also set to become the largest IPO in the country. The company is expected to raise nearly Rs. 38,000 crore from the market. However, the key point here is that even though the Jio Platforms IPO is coming, it has become clear that Reliance Industries investors will not receive any direct benefit from it. In 2023, when Jio Financial Services was carved out as a separate company, shares were allotted free of cost to existing investors. But this time, Reliance investors will not receive any Jio shares free of cost in their accounts. The IPO will benefit existing investors only indirectly, and there will be no direct gain for them. This is because the company will issue shares directly to the public.

However, market circles say that the Jio public issue will reveal the true value of Jio Platforms, which remained unclear until now as it was part of Reliance Industries. With this value unlocking, Reliance Industries shares are expected to undergo a re-rating, which in turn could significantly increase the company's overall market capitalization. On the other hand, market experts believe that by raising funds through this issue, the company will be able to strengthen its balance sheet without depending on the parent company and will also have access to the funds required for future expansion.

Reliance Industries investors, however, can apply for the Jio IPO under the shareholder reservation quota. Even after the IPO, Reliance Industries will continue to be the majority shareholder in Jio Platforms with a 67 percent stake. It is also being said that Jio's profitability and other factors, as the country's number one telecom company, will be reflected in Reliance Industries' earnings per share (EPS). However, the news that Reliance Industries shareholders will not receive any shares directly has disappointed many investors.