Reliance Industries Ltd. has set investment banking advisory fees for the planned IPO of its telecom arm, Jio Platforms Ltd., at around 0.65% of the issue size, according to sources familiar with the matter. This is roughly in line with fees expected for the National Stock Exchange of India Ltd.’s own upcoming listing.
If Jio’s IPO reaches its potential size of $4 billion, total advisory fees could reach $26 million, with the majority likely going to lead banks such as Kotak Mahindra Capital and Morgan Stanley. The final fee allocation will depend on the banks’ client coverage and the company’s discretion, the sources added.
Reliance did not respond immediately to requests for comment.
The Jio IPO is expected to be India’s largest-ever and marks the first major listing from Mukesh Ambani’s flagship company in nearly 20 years. The advisory fees are broadly in line with those expected for NSE, which may raise roughly $2.5 billion through its own IPO.
Both Jio and NSE’s proposed fee structures are well below market norms. Indian firms paid investment banks an average of 1.86% across 417 IPOs last year and 1.67% across 350 IPOs in 2024, according to LSEG data.
Reliance aims to file draft documents for Jio’s IPO by the end of this month. Other banks involved in advisory roles include HSBC, JPMorgan, Goldman Sachs, JM Financial, Axis Bank, and SBI Capital Markets.
