- Jio Platforms IPO priced at Rs 1,119 per share, doubling early investors' value
- Meta and Google invested Rs 43,574 crore and Rs 33,737 crore in 2020 at Rs 488/share
- Early investors' stakes now worth Rs 99,800 crore (Meta) and Rs 77,300 crore (Google)
When Jio Platforms lists on Wednesday, the investors who bought shares in its IPO will be paying Rs 1,119 for each one. Six years ago, at the height of the Covid-19 lockdown, a group of global companies and funds bought into the same business for far less.
Meta, then called Facebook, invested Rs 43,574 crore in April 2020. Google followed with Rs 33,737 crore in July. Divide what each paid by the shares each holds today, and both come to roughly Rs 488 a share, less than half the IPO price.
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At Rs 1,119, Meta's stake is worth about Rs 99,800 crore and Google's about Rs 77,300 crore. Together, that is around Rs 1 lakh crore more than they put in.
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What They Paid, And What It Is Worth Now
Jio Platforms raised Rs 1,52,056 crore from financial and strategic investors in three months in 2020, Reliance said at the time. The biggest of them still appear among Jio's top shareholders in its red herring prospectus filed with SEBI.
Meta and Google paid the least per share. The other seven investors in the table, who came in during May and June, paid about Rs 549 a share, a higher valuation than Facebook's April deal. Every one of them has roughly doubled their money at the IPO price.
If Jio lists where the grey market suggests, near Rs 1,365, Meta and Google's multiple would rise to about 2.8 times. Grey-market prices are unofficial and can change quickly.
| Investor | Invested in 2020 | Rs crore invested | Shares held (crore) | Cost per share | Value at Rs 1,119 | Multiple |
|---|---|---|---|---|---|---|
| Meta (Facebook) | April 22 | 43,574 | 89.23 | Rs 488 | Rs 99,846 crore | 2.3x |
| July 15 | 33,737 | 69.09 | Rs 488 | Rs 77,307 crore | 2.3x | |
| Vista Equity Partners | May 8 | 11,367 | 20.69 | Rs 549 | Rs 23,156 crore | 2.0x |
| KKR | May 22 | 11,367 | 20.69 | Rs 549 | Rs 23,156 crore | 2.0x |
| PIF (Saudi Arabia) | June 18 | 11,367 | 20.69 | Rs 549 | Rs 23,156 crore | 2.0x |
| Mubadala | June 5 | 9,094 | 16.55 | Rs 549 | Rs 18,525 crore | 2.0x |
| General Atlantic | May 17 | 6,598 | 12.01 | Rs 549 | Rs 13,442 crore | 2.0x |
| Abu Dhabi Investment Authority | June 7 | 5,684 | 10.35 | Rs 549 | Rs 11,578 crore | 2.0x |
| TPG | June 13 | 4,547 | 8.28 | Rs 549 | Rs 9,262 crore | 2.0x |
Sources: Reliance Industries media releases of April 22, June 19 and July 15, 2020; Jio Platforms red herring prospectus. Cost per share is the amount invested divided by shares held today. Shares are held through affiliates or investment vehicles. Silver Lake is excluded because part of its 2020 investment was made with co-investors.
The Rupee Caveat
Most of these investors are based overseas and measure returns in dollars. On that basis, their gains are smaller.
When Reliance announced Facebook's deal in April 2020, it converted the valuation into dollars at an assumed Rs 70 to the dollar. Currently, the local currency is hovering around the 95-mark against the greenback. A weaker rupee shrinks the dollar value of a rupee gain, so the doubling shown above is less impressive in the currency these investors report in.
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So Are IPO Buyers Overpaying?
Not necessarily. Early investors almost always pay less than later ones, because they take on more risk and wait longer for a return. The useful question is not what Meta paid in 2020, but whether Rs 1,119 is a fair price for Jio as it is today.
On that measure, the IPO was priced at about 33 times Jio's FY26 earnings per share of Rs 33.63, as stated in the prospectus. Bharti Airtel, its closest listed rival, traded at about 41 times trailing earnings on Tuesday morning, according to Google Finance.
That does not make Jio cheap or expensive on its own. It does mean the IPO was priced at a lower earnings multiple than the market currently gives Jio's main competitor.
Are They Selling?
No. The IPO consists only of new shares issued by Jio, according to the prospectus, so none of the existing shareholders sold in it. Meta, Google and the funds still hold every share listed in the table, and their gains exist only on paper.
That could change later. Shareholders who held Jio shares before the IPO are typically barred from selling for a period after listing under SEBI's rules. Once that lock-in ends, any of them could choose to sell part of their stake, which would add to the supply of shares in a company where less than 3% is currently in new public hands.
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