Reliance Industries released October salaries 15 days early to encourage its 420,000 employees to invest in the upcoming Jio Platforms IPO. The company wants workers to become shareholders before the share sale starts on October 21. Teams also helped staff open trading accounts to boost participation in this massive offering.
Reliance Industries released October salaries to its employees about 15 days early, ahead of Jio Platforms’ upcoming initial public offering (IPO), as billionaire Mukesh Ambani seeks to mobilise the conglomerate’s vast workforce to boost participation in the much-anticipated share sale.
According to a Bloomberg report, Reliance has reached out to most of its nearly 420,000 employees across its group companies, encouraging them to consider investing in the $3.2 billion IPO of Jio Platforms, the group’s telecom and digital services arm.
Employees were not given a reason for the early salary release, people familiar with the matter said, asking not to be identified because the information is private.
The move comes as Reliance prepares for what is expected to become India's biggest-ever IPO. The company is looking to expand participation in the offering by turning employees, and potentially their family members, into shareholders of Jio Platforms.
Reliance encourages employees to open trading accounts
The conglomerate's outreach has gone beyond informing employees about the IPO. Sources told Bloomberg said teams have also asked workers whether they or their family members have accounts required for electronic share trading. Employees without such accounts have been encouraged to open them.
Reliance Industries (RIL) has 419,911 employees, making it the second-largest workforce among India's listed companies, behind Tata Consultancy Services (TCS), according to Bloomberg data. Of these, 74,822 employees work at Jio, according to the company's website.
Jio employees can apply for shares under the employee quota, while other Reliance group employees can participate in the retail investor category. Employees who also hold shares in Reliance Industries can apply through the portion reserved for the parent company's eligible shareholders.
A representative for Reliance Industries did not immediately offer any comment, the report said.
Jio IPO: Valuation, price band and employee quota
Jio Platforms is targeting a valuation of up to ₹10.3 lakh crore ($108 billion) through its IPO. The company aims to raise as much as ₹30,200 crore ($3.2 billion), offering up to 270 million shares at a price band of ₹1,065 to ₹1,119 per share.
According to company filings, Jio has reserved shares worth up to ₹500 crore for eligible employees, who will receive a 5% discount on the offering price. The IPO also includes a reservation of shares worth up to ₹2,500 crore for eligible Reliance Industries shareholders.
The offering is scheduled to open for public subscription on October 21 and close on October 23. The anchor investor book is set to open on October 19.