Mukesh Ambani’s mega IPO Reliance Jio is said to set bank fees in line with NSE

Reliance Industries Ltd. has set investment banking advisory fees for the planned initial public offering of its telecom unit at about 0.65% of the issue size, according to people familiar with the matter, largely in line with those to be paid by National Stock Exchange of India Ltd.Based on a potential offering size of up to $4 billion for Jio Platforms Ltd., the total fee pool may be as high as $26 million, with the bulk likely to be shared among lead banks such as Kotak Mahindra Capital Co. and Morgan Stanley, the people said, asking not to be identified because the information is private.

The fee distribution may ultimately depend on the client coverage from the banks and the company’s own discretion, two of the people said.

A representative for Reliance didn’t immediately respond to requests for comment.

Jio’s IPO could be India’s largest-ever listing and the first by a major unit of billionaire Mukesh Ambani’s flagship company, Reliance, in almost two decades.

Jio’s banking fees are poised to be broadly in line with those set by NSE, which is considering an IPO that may raise about $2.5 billion, people familiar with the matter have said.

The proposed fee structure by both Jio and NSE is notably lower than broader market averages. Indian companies paid investment banks an average of about 1.86% across 417 IPOs last year and 1.67% across 350 issuances in 2024, according to data compiled by LSEG.Reliance is aiming to file draft paperwork for Jio as early as the end of this month, people familiar with the matter have said. Other banks selected for advisory roles on the listing include HSBC Holdings Plc, JPMorgan Chase & Co., Goldman Sachs Group Inc., JM Financial Ltd., Axis Bank Ltd. and SBI Capital Markets Ltd.