Jio's record IPO paid bankers less than half of what Hyundai paid

Jio Platforms paid substantially lower fees to investment bankers for India's largest-ever initial public offering (IPO) than Hyundai Motor India did for its record-breaking issue in 2024.

Jio paid Rs 196.2 crore in fees and commissions to its 19 book-running lead managers (BRLMs) for its Rs 30,213 crore IPO, according to its issue expense disclosures. The amount represented just 0.65% of the issue size.

By comparison, Hyundai Motor India paid Rs 493 crore to five BRLMs for its Rs 27,870 crore IPO in 2024, equivalent to 1.77% of the issue size.

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This means Jio's IPO was approximately 8% larger than Hyundai's, but its banker fee pool was about 60% smaller.

The difference extended to overall issue expenses. Jio's estimated IPO expenses stood at Rs 469.7 crore, or 1.56% of the issue size, compared with Hyundai's Rs 624 crore, or approximately 2.2%.

Jio's expense disclosures included Rs 50 crore for advertising and marketing, Rs 50.6 crore for selling commissions and related charges, and Rs 45 crore for miscellaneous expenses.

The two offerings also differed in structure. Hyundai's IPO was entirely an offer for sale, with proceeds going to the selling shareholder, while Jio's was a fresh issue.

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Jio's IPO closed with approximately 22 times subscription, compared with 2.4 times for Hyundai's offering.

Despite handling the larger and more heavily subscribed issue, Jio's bankers collectively received less than half the fees paid to Hyundai's five lead managers.

Jio Platforms is scheduled to list on the BSE and NSE on Wednesday, October 28 at 10 am. The IPO issue price has been fixed at ₹1,119 per share.