Jio Platforms, the digital arm of billionaire Mukesh Ambani's Reliance Industries, seeks to raise as much as $3.2 billion in an initial public offering. The offering could be India's biggest IPO. The listing will test public-market appetite for a company that attracted more than $20 billion from global investors, including Google and Meta, in 2020.
Reliance Industries said in a stock exchange filing on Wednesday that Jio set a price band of ₹1,065 to ₹1,119, about $11.19 to $11.76, per share. The offering covers up to 270 million new shares. The IPO will open for subscription on October 21 and close on October 23. Bidding for anchor investors is scheduled for October 19. The upper end of the proposed price band would value Jio at about ₹10.3 trillion, around $108.3 billion, based on expected post-offering shares.
Jio's IPO is set to exceed Hyundai Motor India's 2024 offering even if Jio's shares are priced at the lower end of the range. Hyundai Motor India's offering raised ₹278.7 billion, $3.3 billion at the time, and remains India's biggest to date. Jio was valued at up to ₹4.91 trillion, about $65 billion at the time, in 2020. Meta, then known as Facebook, invested $5.7 billion. Google committed $4.5 billion.
Jio has reserved shares worth up to ₹25 billion, about $263 million, for eligible Reliance Industries shareholders. Jio has reserved another ₹5 billion, $53 million, in shares for employees. Employees will receive a discount of ₹54 per share. Jio's IPO prospectus states that Jio plans to use up to ₹275 billion, $2.9 billion, to repay debt at Reliance Jio Infocomm. The prospectus states that the remaining proceeds will fund general corporate purposes.
Jio's IPO prospectus puts revenue for the quarter ended June at ₹391.7 billion, about $4.1 billion, nearly 12% higher than a year earlier. The prospectus puts net profit for the same quarter at ₹77.6 billion, around $816 million, up 9% from a year earlier.
Jio launched in 2016 and has grown into India's largest telecom operator. Jio had more than 524 million subscribers as of March 31, ahead of Bharti Airtel, Vodafone Idea and state-owned BSNL. Jio initially attracted customers with free data and cheap plans. However, Jio's prices are now comparable to rivals' prices. Jio has expanded beyond telecommunications into broadband, cloud services and other digital businesses.
Elon Musk has intensified criticism of Ambani, accusing Ambani of trying to keep Starlink out of India. Indian authorities have rejected Musk's claims. The accusation comes more than a year after Jio and rival Airtel signed deals with Musk's SpaceX to distribute Starlink's satellite internet service in India. The distribution deals are subject to regulatory approvals.
Jio Platforms Seeks $3.2B IPO, Could Be India's Largest
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Summary
Jio Platforms, the digital unit of Reliance Industries, plans to raise up to $3.2 billion in an IPO, potentially India's largest. The offering includes 270 million shares priced between ₹1,065 and ₹1,119, with subscription opening October 21. The IPO could value Jio at up to $108.3 billion. Funds will partly repay debt and support corporate needs. Jio reported $4.1 billion in revenue for the June quarter, up 12% year-on-year. On-chain data from altcoins to watch shows growing interest in India’s market.
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