Jio Platforms, the digital and telecommunications business controlled by Mukesh Ambani’s Reliance Industries, has launched a $3.2 billion initial public offering, expected to become India’s largest share sale. The offering comes amid a subdued stock market, with investors drawn to the company’s scale and technology business, despite regulatory uncertainty and intensifying competition…reports Asian Lite News Desk
Jio Platforms is seeking to raise 302 billion rupees through the sale of newly issued shares, marking the first time the company has approached public investors. The proceeds will be used to repay loans taken to build and expand Reliance Jio Infocomm, India’s largest private-sector telecoms operator.
The offering is the second major IPO in India within a month, following a $2.4 billion issue by the National Stock Exchange, despite weakness across the wider equity market.
Arun Kejriwal of Kejriwal Research and Investment Services told the BBC that the IPO market had remained active even as stock market performance weakened. He said institutional and retail investors were showing interest in new listings, attracted by valuations and businesses with the potential to scale.
Kejriwal said IPOs were being priced to reflect lower valuations and price-to-earnings ratios among listed companies, making some offerings more appealing to investors. The ratio measures how much investors are prepared to pay for each unit of a company’s earnings.
Jio Platforms set a price band of 1,065 to 1,119 rupees per share for the offer, which is scheduled to close on Friday.
The sale comes as India’s benchmark Nifty 50 index has fallen by more than 12% this year. However, demand from institutional investors has indicated strong interest in the telecoms company’s market position.
According to Reuters, institutional investors placed bids worth $3.2 billion on Monday, equivalent to 30 times the shares reserved exclusively for them ahead of the IPO opening.
Centrum Institutional Research said Jio’s network leadership, infrastructure and expanding digital ecosystem positioned it to sustain growth over the medium to long term.
However, analysts have warned that the company faces continued competitive pressure, including price wars and the possibility of customers switching to rivals.
Competition could intensify as technology billionaire Elon Musk seeks to expand Starlink’s satellite internet business in India. Musk has publicly criticised Ambani on X while Starlink awaits final approval for a commercial launch in the country. He also questioned whether Ambani was the “real boss of India”. Ambani and Reliance did not directly respond to the attacks.
Jio also faces regulatory uncertainty in a heavily supervised telecommunications sector. The Indian government has emerged as the largest stakeholder in rival Vodafone Idea after converting dues into equity as part of a relief package.
The IPO marks Reliance’s first public offering in two decades and signals a transition towards the next generation of the Ambani family leadership.
Investor roadshows have been led by Akash Ambani, managing director of Jio Platforms, and his twin sister Isha Ambani, an executive director at Reliance Retail Ventures. Their father, Reliance chairman Mukesh Ambani, has stayed away from the investor presentations.
Reliance companies have long attracted retail investors, partly because of the group’s history of promoting shareholder participation. Founder Dhirubhai Ambani famously described shareholders as members of the “Reliance family”.
The Jio listing is expected to be a significant milestone for the conglomerate as it seeks fresh capital to strengthen its telecommunications business and expand its digital operations.
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