- Basis of allotment for Jio Platforms Rs 30,213-crore IPO to be finalised Monday evening
- Retail investors will receive one lot of 12 shares due to oversubscription in the retail category
- Grey market premiums indicate a potential listing gain of about 22% over the Rs 1,119 issue price
The basis of allotment for Jio Platforms' Rs 30,213-crore IPO is due to be finalised on Monday, with results expected on the registrar KFin Technologies' website and on the BSE and NSE by late evening.
Retail applicants who are successful will receive one lot of 12 shares. That is because the retail book drew more applications than there are lots to go round, so lots are handed out one per winner by a computerised draw. At the issue price of Rs 1,119, a lot costs Rs 13,428, and that is the amount that will be debited from successful applicants' bank accounts.
What GMP Is Signalling
Two widely followed grey market trackers point to a listing gain of about 22%.
InvestorGain put Jio's grey market premium (GMP) at Rs 247 at 4:02 pm on Monday. Added to the Rs 1,119 issue price, that implies a listing price of about Rs 1,366, or 22.07% higher. On the site's figures, the premium has ranged between Rs 148 and Rs 273 since tracking began on Oct.r 4.
IPO Watch showed a slightly higher premium of Rs 250 in its latest update at 9:46 am on Monday, implying a listing price of about Rs 1,369, or 22.34% above the issue price.
At Rs 1,366, Jio Platforms would be valued at about Rs 12.58 lakh crore, based on its 920.9 crore shares after the issue.
The grey market is unofficial and unregulated. Its prices can move sharply before listing and are not a reliable guide to where a stock will actually open.
What Your 12 Shares Could Be Worth
If the grey market estimate holds, a lot bought for Rs 13,428 would be worth about Rs 16,392 at InvestorGain's implied listing price, a gain of roughly Rs 2,964. At IPO Watch's estimate, it would be worth about Rs 16,428, a gain of about Rs 3,000.
Listing prices can differ widely from the grey market, so the table below shows what one lot would be worth across a range of outcomes.
Listing price | Change vs issue price | Value of 12 shares | Gain or loss |
|---|---|---|---|
Rs 1,454.70 | +30% | Rs 17,456 | +Rs 4,028 |
Rs 1,369 (IPO Watch GMP) | +22.34% | Rs 16,428 | +Rs 3,000 |
Rs 1,366 (InvestorGain GMP) | +22.07% | Rs 16,392 | +Rs 2,964 |
Rs 1,342.80 | +20% | Rs 16,114 | +Rs 2,686 |
Rs 1,230.90 | +10% | Rs 14,771 | +Rs 1,343 |
Rs 1,119 | Flat | Rs 13,428 | Nil |
Rs 1,007.10 | -10% | Rs 12,085 | -Rs 1,343 |
These figures are before brokerage, exchange charges and taxes.
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Employees who bid in their reserved quota got a Rs 54 discount, paying Rs 1,065 a share. For them, 12 shares cost Rs 12,780 and would be worth about Rs 16,392 at InvestorGain's implied price, a gain of roughly Rs 3,612.
Reliance Industries shareholders who applied in their reserved quota paid the full Rs 1,119. Allotment in that category is proportionate rather than a one-lot draw, so the number of shares they receive depends on how much they bid.
Anyone who sells at a profit on listing day will owe short-term capital gains tax, which applies to listed shares held for less than 12 months. The rate has been 20%, plus applicable surcharge and cess, since July 2024. On a Rs 2,964 gain, that works out to about Rs 593 before cess. Securities transaction tax and brokerage charges also apply when shares are sold.
Once the basis of allotment is out, applicants can check their status on the KFin Technologies website or on the BSE and NSE allotment pages, using their PAN, application number or demat account details.
On Tuesday, Oct. 27, shares will be credited to the demat accounts of successful applicants. Money blocked for applications that did not get shares will be released the same day.
Jio Platforms shares are expected to start trading on the BSE and NSE on Wednesday, Oct. 28, at 10 am.
Disclaimer: This article is for information only and is not investment advice. Grey market premiums are unofficial and do not guarantee listing gains.
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