Meta Platforms and Google could be sitting on nearly ₹1 lakh crore in combined paper gains from their investments in Jio Platforms as the Reliance Industries-backed digital services company prepares to launch next week what is set to become country's largest-ever initial public offering (IPO).
Meta Platforms owns a 10% stake through Jaadhu Holdings LLC, while Google International LLC holds a 7.73% stake. However, neither existing shareholder is selling shares through the IPO.
At the upper end of Jio Platforms’ IPO price band of ₹1,119 per share, the two US technology giants could see returns of approximately 129% on their investments made in 2020, according to estimates highlighted in Groww’s LinkedIn post on Friday, October 16.
The issue is entirely a fresh issue of up to 27 crore equity shares, with no offer-for-sale (OFS) component. This means existing investors will not sell their shares through the IPO. At the upper end of the price band of ₹1,119 per share, Jio Platforms’ IPO is expected to raise approximately ₹30,213 crore.
Reliance Industries Group will become India’s largest conglomerate by the combined market capitalization of its listed companies after Jio Platforms makes its stock market debut, Kotak Mahindra Bank founder Uday Kotak said on Thursday.