The man who reaps 100-fold from Jio IPO

A businessman instrumental in Reliance Industries Ltd’s telecom entry 16 years ago now stands to gain substantially from Jio Platforms Ltd’s proposed listing, likely realizing over a 100-fold gain on a six-year-old investment.

- Varun Sood

Mahendra Nahata’s 0.54% holding in Jio Platforms, purchased for ₹48 crore in 2020, is now worth $611 million (₹5,800 crore) based on a Motilal Oswal analysis that values the telecom and digital giant at $114 billion. This dramatic increase stems from his early association with Reliance’s telecom push.

Jio Platforms, incorporated on 15 November 2019, filed its draft prospectus on Friday to issue 270 million new shares, reducing Reliance Industries’ ownership from 66.43% to 64.5%. Reliance has yet to reveal its fundraising target or the price at which it will offer its shares.

On 7 July 2020, eight months after Jio Platforms was set up, the Nahata family, including son and daughter, acquired 0.414% (37.04 million shares) at ₹10 each by converting Compulsorily Convertible Debentures, the DRHP shows. At the same time, Reliance issued 10.83 million shares (0.121%) to the Nahata family, increasing its stake in Jio Platforms to 0.536%.