Jio Platforms Plans $3.2 Billion IPO in India
The digital subsidiary of Indian conglomerate Reliance Industries is planning to raise up to $3.2 billion through an initial public offering (IPO) that could become India's largest ever.
Jio Platforms, the digital subsidiary of Indian conglomerate Reliance Industries, is planning to raise up to $3.2 billion through an initial public offering (IPO) that could become India's largest ever.
The IPO will test investor appetite for a company that has already attracted significant interest from global investors, including Google and Meta, which invested over $20 billion in Jio in 2020.
Reliance Industries announced the details of the IPO on Wednesday through a stock exchange filing. According to the document, Jio plans to issue up to 270 million new shares at a price band of ₹1,065 to ₹1,119 (approximately $11.19-$11.76) per share.
The offering is expected to make Jio one of the most valuable companies in India, with an estimated market value of around $108.3 billion if its shares are priced at the upper end of the proposed range.
In 2020, Meta invested $5.7 billion in Jio, while Google committed $4.5 billion, valuing the company at up to ₹4.91 trillion (around $65 billion) at the time.
Jio has experienced rapid growth since its launch in 2016, becoming India's largest telecom operator with over 524 million subscribers as of March 31.
Jio's initial public offering (IPO) has sparked controversy, with Elon Musk accusing Ambani of trying to keep Starlink out of India. This comes over a year after Jio and Airtel partnered with SpaceX to distribute Starlink's satellite internet service in the country, pending regulatory approval.
Indian authorities have rejected Musk's claims, leaving the billionaire to continue his criticism. The dispute highlights the intense competition between telecom operators in the country, where Jio has emerged as a major player.
Jio's financial performance is strong, with revenue rising nearly 12% year-over-year to ₹391.7 billion ($4.1 billion) in the quarter ended June. Net profit climbed 9% to ₹77.6 billion ($816 million), according to its IPO prospectus.
The company has allocated shares worth up to ₹25 billion ($263 million) for eligible Reliance Industries shareholders, who will receive a discount of ₹54 per share. Another ₹5 billion ($53 million) in shares have been set aside for employees, who will also benefit from the discount.
Jio plans to use a significant portion of the IPO proceeds to repay debt at its telecom subsidiary, Reliance Jio Infocomm. Up to ₹275 billion ($2.9 billion) will be allocated towards this purpose, with the remaining funds going towards general corporate expenses.
The offering is expected to be one of India's largest IPOs, with Jio seeking to raise $3.2 billion. The company has experienced rapid growth since its launch in 2016 and now boasts over 524 million subscribers as of March 31.
Jio, a telecommunications company founded by Indian business magnate Mukesh Ambani, is reportedly planning to raise $3.2 billion through an initial public offering (IPO) that could be the largest in India's history.
The massive fundraising effort comes as Jio continues to expand its operations and subscriber base, which has grown significantly since its launch in 2016, reaching over 524 million subscribers by March 31.
Facts based on reporting originally published by TechCrunch.
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