Jio Platforms IPO: RIL to not levy royalty for 'Jio' brand

Reliance Industries (RIL) will not charge any royalty to IPO-bound Jio Platforms for using the 'Jio' brand, a departure from the common practice of promoters levying brand usage fees on operating subsidiaries. The arrangement, disclosed in Jio Platforms' DRHP, avoids the need to price the brand on an arm's length basis and is seen as shareholder-friendly, with experts suggesting the presence of strategic investors such as Meta and Google may have influenced the decision. Jio Financial Services (JFSL) also does not pay royalty for the Jio brand, according to its annual report.