Ambani’s Jio seeks to raise $3.2B in what could be India’s biggest IPO

Jio Platforms, the digital subsidiary of Indian business magnate Mukesh Ambani's Reliance Industries, plans to raise up to $3.2 billion in its anticipated initial public offering, potentially making it India's largest IPO ever. The offering, which will include up to 270 million new shares priced between ₹1,065 and ₹1,119 per share, will open for subscription on October 21 and conclude on October 23.

At the higher end of the price range, the IPO would value Jio at approximately ₹10.3 trillion, or $108.3 billion, based on the estimated number of shares outstanding post-offering. This would surpass Hyundai Motor India's ₹278.7 billion ($3.3 billion) offering in 2024. Jio, established in 2016, has grown to become India's leading telecom operator, with over 524 million subscribers as of March 31, 2023, ahead of its competitors Bharti Airtel, Vodafone Idea, and BSNL.

Initially, Jio attracted customers with free data and affordable plans, but its pricing has since aligned with competitors. Additionally, Jio has diversified its business, offering broadband, cloud services, and other digital solutions. The IPO comes amid growing tensions between Elon Musk and Ambani, with Musk accusing Ambani of attempting to prevent Starlink satellite internet service from entering India.

However, Indian authorities have dismissed Musk's allegations. In the quarter ending June, Jio reported a 12% revenue increase year-over-year to ₹391.7 billion ($4.1 billion) and a 9% net profit rise to ₹77.6 billion ($816 million). The company has allocated shares worth up to ₹25 billion ($263 million) for eligible Reliance Industries shareholders and an additional ₹5 billion ($53 million) for employees, who will receive a ₹54 per share discount.

Upon completion of the IPO, Jio intends to utilize up to ₹275 billion ($2.9 billion) to repay debt on its telecom subsidiary, Reliance Jio Infocomm, while the remaining funds will be allocated towards general corporate purposes.