Jio Platforms targets $106bn valuation in what could be India’s biggest IPO
- Jio is reportedly seeking to raise about $3.1 billion, exceeding Hyundai Motor India’s record offering.
- The proposed valuation is below the $131 billion anticipated when draft IPO papers were filed in June.
- The company plans to use up to 275 billion rupees to repay borrowings of its telecom subsidiary.
Mukesh Ambani’s Jio Platforms is targeting a valuation of 10.3 trillion Indian rupees ($106 billion) for its planned initial public offering, which could become the largest stock market listing in India, according to reports.
The company, which counts Meta and Google among its major foreign investors, is expected to offer shares at between 1,065 and 1,119 Indian rupees each. At the upper end of that range, the offering would raise approximately 302 billion rupees ($3.1 billion), exceeding Hyundai Motor India’s $2.9 billion IPO in 2024.
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The proposed pricing and valuation were disclosed by four bankers involved in the transaction, who spoke anonymously because they were not authorised to discuss the matter publicly. Parent company Reliance Industries did not immediately respond to a request for comment.
A successful listing at the targeted valuation would put Jio Platforms among India’s four largest listed companies by market capitalisation, behind Reliance Industries, rival telecom operator Bharti Airtel and private lender HDFC Bank.
However, the valuation is lower than the $131 billion anticipated in June, when draft documents for the offering were filed. Analysts attributed the reduced pricing to a broader stock market correction linked to a surge in crude oil prices amid the Iran war.
India’s benchmark Nifty 50 index has declined by around 6% in the nearly four months since the filing.
The proposed offering follows the National Stock Exchange of India’s high-profile listing in September. Indian IPO proceeds have risen 8.3% so far this year to $12.65 billion compared with the same period last year, according to market data.
Led by Mukesh Ambani’s son Akash Ambani, Jio operates Reliance’s telecommunications and digital businesses. Its services span mobile connectivity, fixed broadband, cloud computing, entertainment, enterprise technology and artificial intelligence.
The company plans to allocate up to 275 billion rupees from the net IPO proceeds to repay or prepay borrowings of its telecom subsidiary, Reliance Jio Infocomm.
Jio’s telecom arm had 524.4 million customers as of March. Revenue from operations increased 14.6% to 1.47 trillion rupees in the financial year ended March, while profit rose 15.1% to 300.5 billion rupees.
Yes, this is suitable for Pakistan Times’ business section as a major regional business and technology story. Place it under International Business or Markets, and retain “according to reports” because the pricing has not been publicly confirmed by the company.
