The upcoming initial public offering (IPO) of Jio Platforms has reserved equity shares worth up to ₹500 crore for eligible employees, according to its Red Herring Prospectus (RHP).
Large IPOs generally reserve a portion of the issue for eligible employees, allowing them to participate in the public offering, often at a discount to the issue price, subject to the terms and conditions specified in the offer document.
Jio Platforms said in its draft red herring prospectus (DRHP) that eligible employees applying under the employee reservation portion can bid at the cut-off price, with the bid amount calculated by multiplying the cap price by the number of equity shares applied for, as specified in the bid-cum-application form.
It said that the maximum bid amount per eligible employee has been capped at ₹5 lakh, while the initial allotment to an eligible employee will not exceed ₹2 lakh.
Similarly, eligible Reliance Industries (RIL) shareholders applying under the RIL shareholders reservation portion can bid at the cut-off price, provided their bid amount does not exceed ₹2 lakh. Their bid amount will also be calculated by multiplying the cap price by the number of equity shares applied for, as specified in the bid-cum-application form, according to DRHP report.