Meta- and Google-backed Jio Platforms, India's largest telecom operator, is looking to raise up to 302 billion rupees ($3.2 billion) through an initial public offering. Reliance Industries, Jio Platforms' parent company, said in an exchange filing that Jio Platforms will sell 270 million shares. The IPO price range is 1,065 rupees to 1,119 rupees apiece. The share sale will run from Oct. 21 to Oct. 23.
The IPO will be India's largest ever in rupee terms. However, the IPO will be India's second largest in dollar terms, marginally behind Hyundai Motors' $3.3 billion IPO in 2024. Indian market intelligence firm Prime Database had estimated that Jio Platforms would raise around 377 billion rupees.
The top end of the price range values Jio Platforms at around $108 billion, much lower than previously expected. Jio Platforms has been positioning itself as a technology company rather than just a traditional utility provider. However, investors seem unconvinced. Deven Choksey, managing director of Mumbai-based DRChoksey Finserv, said Jio Platforms is fundamentally a telecom company. Choksey said Jio Platforms earns revenue primarily from selling internet data, although entertainment and gaming applications owned by Jio Platforms increase data consumption.
Jio is India's largest telecom company, with over half a million subscribers. However, Jio's current IPO price would value Jio below Bharti Airtel, India's second-largest telecom company. LSEG data puts Bharti Airtel's market capitalization at $117.5 billion.
LSEG data shows that Indian billionaire Mukesh Ambani's flagship company, Reliance Industries, owns more than 66% of Jio Platforms. Meta Platforms' affiliate Jaadhu Holdings owns nearly 10%, according to LSEG data. Google International owns 7.7%, according to LSEG data. Neither Meta nor Google will sell their stakes, according to the IPO papers.
Jio Platforms also plans to introduce satellite communications services in India, putting Jio Platforms at the center of a dispute between Ambani and Starlink's Elon Musk. Jio is reportedly looking to establish a network of around 1,600 low Earth orbit satellites and 23 ground stations to expand connectivity across India. Musk last Saturday accused Ambani of blocking Starlink's launch in India to maintain what Musk called Ambani's "monopolistic exploitation" of the Indian market.
Jio Platforms to Raise Up to $3.2 Billion in Historic IPO in India
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Summary
Jio Platforms, India's top telecom firm backed by Meta and Google, is set to raise up to $3.2 billion in a landmark IPO from October 21 to 23. Shares will trade between 1,065 and 1,119 rupees, valuing the company at $108 billion at the top end. Reliance owns 66%, with Meta and Google holding 10% and 7.7%, respectively. The offering will be India’s largest in rupees and second-largest in dollars. Amid rising market volatility, altcoins to watch may see renewed interest as investors track the fear and greed index for crypto sentiment shifts. Jio also plans satellite services, sparking a dispute with Elon Musk over India’s market access.
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