Oil, AI and a feud with Musk: India billionaire Mukesh Ambani’s Jio launches US$3.2b IPO

Mumbai, October 21 — Mukesh Ambani's digital arm, Jio Platforms, announced its highly anticipated IPO today, aiming to raise up to US$3.2 billion (RM13 billion) in what could be the country's largest-ever listing. The offering is set to debut on October 28, with retail investors allowed to participate until Friday, at share prices between 1,065 and 1,119 rupees. Despite the challenging year India has faced in equities, analysts anticipate a positive response to the stock's debut.

Jio Platforms, established a decade ago, initially disrupted the telecommunications market with its affordable wireless services, rapidly capturing subscribers from competitors Bharti Airtel and Vodafone. The company currently boasts 533 million subscribers, providing a solid foundation for future growth, according to financial services firm Motilal Oswal. However, they caution that monetizing newer digital services still needs to be demonstrated at scale.

The IPO's timing is particularly significant for Reliance Industries, India's most valuable listed company that continues to rely heavily on its traditional oil business. Last year, American White House adviser Peter Navarro accused Indian tycoons of profiting from the Ukraine war by purchasing discounted Russian crude, targeting Reliance's refining empire. Ambani responded by offering an olive branch, supporting the construction of America's first new oil refinery in half a century.

Reliance's strategy is expected to shift beyond its oil business, with Jio serving as the cornerstone of its technological ambitions. The company has expanded into artificial intelligence (AI) and is reportedly considering a low-orbit satellite constellation to provide internet services from space, potentially competing with Elon Musk's Starlink.

Musk recently accused unnamed Indian "oligarchs" of hindering Starlink's rollout in the country, referring to Ambani as "Prime Minister Ambani" and the "real boss of India." Reliance, however, maintains that it has never feared competition and welcomes offerings from rivals in satellite communications, including Starlink.