How can UAE residents apply for the Jio IPO?

Dubai: In what is being touted as India’s largest IPO, Jio platforms will be opening for subscription on October 21. The issue is looking to raise up to ₹30,213 crore  or close to $3.2 billion (Dh11.8 billion) at a price range of ₹1,065 to ₹1,119 a share. 

If we are to consider the top of the band price range, it values Jio at up to $108.3 billion or Dh398 billion. Post the listing  Reliance will continue to keep 66.43 per cent in Jio Platforms. The offer consists entirely of fresh shares of up to ₹27,500 crore or Dh10.43 billion and will be used to repay debt at Reliance Jio Infocomm. 

Jio chairman Akash Ambani called the issue “a great responsibility for our shareholders”. He added that the listing would start a journey, with the focus then shifting to growth and value for shareholders. Mukesh Ambani had set the target for Jio’s market foray the company’s annual meeting back in 2025.

Can UAE residents apply?

NRIs, PIOs and OCI cardholders can apply through NRE or NRO accounts. UAE residents of other nationalities may not be able to bid as retail investors. And the issue has no separate NRI quota. Applicants bid as retail investors up to ₹2 lakh, or in the non-institutional category in case for higher threshold. For retail applicants one lot of 12 shares could cost ₹13,428 or about Dh522. So if you are looking to participate, follow these simple steps.

1. Hold the right bank account. An NRE account allows proceeds to return abroad. An NRO account keeps money in India. Keep your PAN and KYC documents ready. 

2. Open an NRI demat and trading account. A demat account is mandatory, because shares credit electronically. NRIs need NRI demat, trading and NRE or NRO accounts. Verification takes time, so start now. 

3. Skip PIS for the bid. NRIs do not need a Portfolio Investment Scheme (PIS) account to apply in an IPO. 

4. Pick a bidding route. NRIs can use UPI or net banking ASBA (Application Supported by Blocked Amount). UPI works only if the NRE or NRO account links to UPI. ASBA keeps the money in your account but blocks it. 

5. Place the bid. Select Jio Platforms, choose the retail category, enter at least one lot and tick the cut-off price. Approve the UPI mandate by 5 pm on October 23. 

6. Track the dates. Allotment follows on October 26. Refunds and share credits land on October 27. Listing is on October 28. 

If you miss out on allotment

Shares will  list on the BSE and NSE on October 28. Secondary market buying will need a different set-up. The PIS requirement applies to secondary trading of listed Indian equities. An NRE PIS account covers repatriable trades, which means funds can be moved or transferred from a foreign country back to an investor's or company's home country.

An NRO non-PIS account will only cover non-repatriable funds. NRIs can trade equity delivery but not intraday once listed. NRIs can also sell on listing day, where proceeds will get credited to an NRE or NRO account minus the tax deducted at source TDS.