October 13 or 14? What was the deadline to buy RIL shares for Jio IPO reservation?

Reliance Industries shareholders hoping to participate in the Rs 2,500 crore reserved portion of Jio Platforms' mega IPO had to buy RIL shares by October 13 even though the company fixed October 14 as the eligibility cut-off date. The difference comes down to India's stock market settlement rules, which require shares to be settled before investors can qualify for such benefits.

With Jio's IPO scheduled to open on October 21, investors who bought Reliance Industries shares on October 14 or later will miss the shareholder reservation. They can still apply for Jio shares through the regular IPO categories, but they will not be eligible for the separate quota reserved for existing RIL shareholders.

Jio Platforms filed its red herring prospectus on October 14, formally confirming the cut-off date for shareholders and ending speculation over whether investors could still purchase RIL shares to qualify.


Why October 13 was the last day to buy RIL shares

The confusion arises because the record date and the last date to purchase shares are different under India's T+1 settlement system. When an investor buys shares on the stock exchange, ownership is normally settled on the next working day.

For example, an investor who purchased RIL shares on Tuesday, October 13, would ordinarily receive them in the demat account on Wednesday, October 14. That would make the investor eligible for the Jio shareholder quota, provided the other conditions were satisfied.

However, shares bought on October 14 would normally settle on October 15, after the eligibility cut-off. Consequently, October 13 was the last regular trading day to purchase RIL shares for the reservation, while October 14 was the date on which eligible shareholdings were determined.

The prospectus defines eligible shareholders as individuals and Hindu Undivided Families who held public equity shares of Reliance Industries as of October 14. Investors who already owned even one RIL share and satisfied the eligibility conditions could apply under the reservation.

How can eligible RIL shareholders apply?

Jio Platforms has reserved shares worth up to Rs 2,500 crore for eligible RIL shareholders. The separate category gives them an additional opportunity to seek allotment, although it does not guarantee that they will receive shares.

Also Read: From Rs 1,000 in 1977 to Rs 52 lakh today: The Reliance wealth story behind Jio’s Rs 10.3 lakh crore valuation in mega IPO


Eligible shareholders can apply when the IPO opens through their stockbrokers, supported trading applications or bank ASBA facilities. They must select the shareholder category and ensure that the PAN and demat details used in the IPO application match the eligible shareholding records.

Applications in the shareholder category are capped at Rs 2 lakh per eligible shareholder. Under the offer framework, an eligible shareholder may also apply separately in the regular retail category, subject to the prescribed limits and conditions. Such permitted applications are not treated as duplicate bids.

Investors who missed the October 13 purchase deadline can still participate in the IPO as regular applicants. They will, however, have to compete for allotment within the applicable public issue category.

Reliance Jio IPO price band, dates and other details

Jio Platforms has fixed the price band for its public issue at Rs 1,065-1,119 per share. The IPO comprises a fresh issue of up to 27 crore equity shares, with a face value of Rs 10 each. At the upper end of the price band, the issue could raise as much as Rs 30,213 crore, surpassing Hyundai Motor India's 2024 offering to become India's largest IPO.

The minimum application size has been fixed at 12 shares, requiring Rs 13,428 at the upper price band. Investors can bid in multiples of 12 shares thereafter.

The anchor investor book will open on October 19, followed by the public subscription window from October 21 to October 23. The shares are expected to list on October 28.

Besides the Rs 2,500 crore reservation for RIL shareholders, Jio has set aside shares worth up to Rs 500 crore for eligible employees, who will receive a discount of Rs 54 per share.

The IPO will be entirely a fresh share issue, with no offer-for-sale component from existing investors, including Reliance Industries, Meta and Google. Proceeds will primarily be used to repay borrowings at Reliance Jio Infocomm and for general corporate purposes.

At the upper end of the price band, Jio Platforms is seeking a valuation of about Rs 10.3 lakh crore. For existing RIL shareholders, the separate reservation provides a direct opportunity to own shares in the telecom and digital business, subject to allotment, while their Reliance Industries investment continues to provide indirect exposure to Jio.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.