Jio IPO: Meta, Google, ADIA, 7 others eye Rs 3.2 lakh crore stake value, gains on investment

Jio Platforms Ltd's Rs 30,213 crore initial public offer (IPO) is unique, not just because it would be India's largest in terms of issue size, but also because it would be the only mega IPO of this size without an offer for sale (OFS) component, unlike previous largest IPOs such as Hyundai Motor India Ltd and Life Insurance Corporation of India Ltd.

Yet, as the IPO hits the market on October 21, it would pave the way for Rs 3.18 lakh crore in value unlocking for technology giants such as Meta Platforms and Google, and sovereign wealth funds such as ADIA and The Public Investment Fund, many of whom bought stakes in the telecom operator largely in 2020, at the peak of the Covid-19 pandemic.   

In total, the top 10 non-promoter shareholders hold 2,84,43,20,720 shares in Jio Platforms, worth Rs 3.18 lakh crore and accounting for 31.8 per cent of its pre-IPO stake, data compiled by Business Today from the telecom giant's red herring prospectus (RHP) showed.

Jaadhu Holdings, an affiliate of Meta Platforms (erstwhile Facebook), held 8,92,275,913 shares, or 9.98 per cent of the pre-issue paid-up equity share capital in Jio Platforms as of the RHP date. This stake would be worth Rs 99,845 crore at the upper end of the price band of Rs 1,065-1,119 per equity share. Jio IPO, at the offer price, commands market capitalisation of Rs 10.3 lakh crore.    

Meta initially made investments in Jio by acquiring 5,54,938,340 shares on July 7, 2020 at Rs 488.34 apiece. By December 2020, Google had converted its compulsorily convertible preference shares (CCPS), with a face value of Rs 10 each, issued through a private placement. At the upper end of the IPO price band, its investment translates into a notional return of 129 per cent. 

Google International LLC owned 6,90,854,775 shares, or a 7.73 per cent stake in Jio Platforms, valued at Rs 77,306 crore at the upper end of the price band. Google was issued shares at Rs 488.34 apiece on November 23, 2020.

The Public Investment Fund, a sovereign wealth fund of the Kingdom of Saudi Arabia, owned 2,06,931,899 Jio Platforms shares of face value Rs 10 each. The 2.31 per cent stake is valued at Rs 23,155 crore. PIF made its investment on July 10, 2020, at Rs 549.31 apiece. Its value on investments in notional terms has jumped 104 per cent since. 

Omicron Asia Holdings II Pte Ltd, an indirect subsidiary of KKR & Co, and VEPF VII AIV I Ltd, an affiliate of Vista Equity Partners Management, also held 2,06,931,899 shares, or a 2.31 per cent stake each in Jio Platforms, valued at a combined Rs 46,310 crore. It made its investments on July 13, 2020.

An affiliate of Silver Lake, SLP Redwood Holdings, held 168,489,206 shares, or a 1.88 per cent stake valued at Rs 18,853 crore.

Abu Dhabi Investment Authority (ADIA), through Platinum Jasmine A 2018 Trust, held 103,465,950 shares, or a 1.16 per cent stake worth Rs 11,577 crore. MIC Redwood 1 RSC, an indirectly wholly owned subsidiary of Mubadala Investment Company PJSC, held a 1.34 per cent stake in Jio, while India Markets Pte Ltd, managed by TPG Capital, held a 0.93 per cent stake. These investors would also be making big gains as the Jio launches its IPO next week.