Ambani's Jio to make Mumbai trading debut after record US$3.2 billion India IPO

Mumbai, India witnessed the debut of Jio Platforms, the digital arm of Mukesh Ambani's conglomerate Reliance Industries, on Wednesday following a record-breaking Initial Public Offering (IPO). The IPO, which took place in India's largest-ever, raised approximately US$3.2 billion at a price of 1,119 rupees (US$11.76) per share. This event marked the culmination of Ambani's long-standing efforts to diversify his industry beyond oil refining.

The listing, one of the most anticipated events in the year, saw robust demand with investors applying for more than 22 times the shares available. Grey market platforms indicated a premium of around 22% for Jio shares during the pre-listing period, although experts warned that these unofficial indicators may not reliably predict early trading.

Analysts from Emkay Global, a financial services firm, were optimistic about Jio's listing gains. They highlighted Jio's proven track record and the expected strengthening of its cash generation as the 5G investment cycle winds down. According to Emkay Global, Jio is the "digital engine of India."

Jio Platforms was launched a decade ago and initially disrupted the market with its competitive pricing, rapidly gaining subscribers from rivals Bharti Airtel and Vodafone. Currently, the company boasts over 530 million subscribers, with most of its revenue originating from telecoms. However, in recent years, Jio has expanded its operations into digital services and artificial intelligence.

Experts emphasize Jio's pivotal role in Reliance's strategy to shift focus beyond oil and its alignment with the conglomerate's future technology ambitions. Recent reports suggest that Jio is planning to launch a low Earth orbit satellite constellation to provide internet services, potentially competing with SpaceX's Starlink. SpaceX's CEO, Elon Musk, had previously accused unnamed Indian oligarchs of hindering Starlink's rollout in India, referring to Ambani as "Prime Minister Ambani" and himself as "the real boss of India."

In response, Reliance stated that it has never feared competition and welcomes offerings from rivals in satellite communications, including Starlink.