Reliance Industries is preparing for a potential IPO of Jio Platforms Ltd., with investment banking fees expected to be set at around 0.65% of the issue size, aligning with fee structures seen in the National Stock Exchange (NSE) listing plans.
According to a news report, the proposed IPO could be valued at up to $4 billion, taking the total advisory fee pool to approximately $26 million. A significant share of these fees is likely to be distributed among lead banks, including Kotak Mahindra Capital Co. and Morgan Stanley.
The final fee allocation will depend on factors such as client coverage and Reliance’s discretion, as per sources familiar with the matter.
If completed, the Jio IPO could become India’s largest-ever listing and the first major public offering from Reliance Industries in nearly 20 years.
The fee structure being considered is notably lower than broader market averages. Data indicates that Indian companies paid investment banks an average of about 1.86% across 417 IPOs last year and 1.67% across 350 issuances in 2024.
Jio’s approach mirrors that of NSE, which is also exploring an IPO that could raise around $2.5 billion, with similar fee expectations.
Reliance is reportedly aiming to file draft IPO papers for Jio by the end of the month.
Alongside Kotak Mahindra Capital and Morgan Stanley, other banks involved in advisory roles include HSBC Holdings Plc, JPMorgan Chase & Co., Goldman Sachs Group Inc., JM Financial Ltd., Axis Bank Ltd., and SBI Capital Markets Ltd.
A representative from Reliance did not immediately respond to requests for comment.
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