Billionaire Ambani’s Jio soars in market debut after India’s biggest IPO
Wednesday's rally gave Jio a valuation of about US$137 billion, turning it into India's second-most valuable listed firm after its parent company.
On its first day of trading, Jio Platforms saw its shares soar nearly 27% on the National Stock Exchange, closing at 1,417.5 rupees (US$14.90) -- significantly above its issue price of 1,119 rupees (US$11.76). The company, which is the digital services arm of billionaire Mukesh Ambani's Reliance Industries, raised over US$3 billion in the country's largest initial public offering.
Jio Platforms, home to India's largest wireless operator, ended the day with a valuation of about US$137 billion, making it India's second-most valuable listed firm after its parent company.
The wireless service disruptor, launched a decade ago, currently has more than 530 million subscribers, with the majority of its revenue coming from telecom services. However, the firm has been expanding into new areas, including digital services and artificial intelligence. Managing Director Akash Ambani, Mukesh Ambani's eldest son, spoke at the listing ceremony in Mumbai, stating that the company aims to "democratise every technology that can transform Indian lives" in the upcoming decade.
Akash Ambani also mentioned the company's focus on generating more revenue from each customer, driven by the completion of the 5G investment cycle. Jio is expected to have significant cash flow available for future investments, analysts predict. Experts emphasize that Jio is crucial to Reliance's strategy to move beyond its traditional oil business and its future technological ambitions.
Reports suggest that Reliance is exploring a low-orbit satellite constellation to provide internet services from space, potentially competing with Elon Musk's Starlink. The Indian billionaire has accused unnamed Indian oligarchs of preventing Starlink's rollout in the country, referring to himself as "Prime Minister Ambani" and the "real boss of India."
Reliance has responded by welcoming offerings from competitors in satellite communications. Despite its recent successes, experts caution that monetising newer digital services will take time to demonstrate at scale.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
