Jio Platforms Ltd. is gearing up to hit the D-street with its Rs 30,000 crore initial public offer next Wednesday. The IPO has made quite a buzz since the company received SEBI’s nod for the fundraise.
Notably, this is not the first time that Jio has raised funds. Back in 2020, when the world was grappling with the horrors of the Corona pandemic the RIL subsidiary allotted large sums of shares to big companies like Meta Platforms (via Jaadhu Holdings), Alphabet Inc. (via google international), General Atlantic, Intel Capital and Qualcomm among others.
The shares were allotted on a private placement basis at issue prices ranging from Rs 488.34 and Rs 549.31, according to data mentioned in the RHP.
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Jio Platforms raised Rs 1.52 lakh crore (Rs 1,520,553 million) from 13 investors through private placements during 2020, with the largest share allotments going to Jaadhu Holdings (Meta) and Google International LLC.
Meta, through its subsidiary Jaadhu Holdings had bought the most number of shares. The company purchased over 89 shares, amounting to approximately Rs 43,573 crore. Currently the company owns an almost 10% stake in Jio Platforms, second to RIL.
Alphabet’s holding in Jio closely follows that of Meta. In 2020, Google International LLC had bought shares amounting to approximately 33,727 crore, with a single share priced at Rs 549.31.
Times have progressed, so has the value of a single Jio Platform share. The company has fixed its IPO price band between Rs 1,065 to Rs 1,119 per share. Which means that the value of total shares held by these companies have more than doubled in the last six years.
According to the new issue price, the Meta subsidiary holds shares worth approximately Rs 99,866 crore, Alphabet owns shares worth around Rs 77,387 crore.
General Atlantic was another prominent investor in Jio Platforms’ 2020 fundraising round. Through its affiliate, the private equity firm was allotted more than 12 crore shares at Rs 549.31 apiece, translating into an investment of about Rs 6,598 crore.
At the upper end of Jio Platforms’ IPO price band of Rs 1,119 per share, the value of General Atlantic’s holding has risen to approximately Rs 13,442 crore, more than double its original investment.
Intel Capital Corporation, the venture investment arm of Intel, had invested about Rs 1,895 crore in Jio Platforms in 2020. The company was allotted nearly 3.45 crore shares at Rs 549.31 per share.
Based on the IPO’s upper price band of Rs 1,119 per share, the value of Intel Capital’s stake now stands at around Rs 3,859 crore, representing a gain of more than 100% over six years.
Qualcomm Asia Pacific Pte. Ltd., the investment vehicle of Qualcomm, was among the smaller strategic investors in Jio Platforms. The company acquired nearly 1.33 crore shares for about Rs 730 crore during the 2020 fundraising exercise.
At the upper end of the IPO price band, Qualcomm’s holding is now valued at approximately Rs 1,487 crore, more than double the amount it invested six years ago.
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