Ambani's Jio Platforms launches IPO in India seeking up to $3.2 billion

what happened

Reuters reports that Jio Platforms, the telecom and digital arm of billionaire Mukesh Ambani, is raising up to $3.2 billion in the largest share sale in the country's history. The offering values the business at as much as $108.3 billion. Demand was strong: the issue was oversubscribed within two hours of opening to the public on Wednesday, a sign of how investors view the first listing from the Reliance group since Reliance Petroleum went public in 2006.

Jio remains India's biggest mobile operator with more than 500 million subscribers and, according to the company, holds about 60% of the country's data traffic. For the fiscal year ended March, revenue rose 14.6% to 1.47 trillion rupees ($15.45 billion), while profit climbed 15.1% to 300.49 billion rupees. Around 90% of those figures came from the telecom business.

Reliance Industries owns 66.43% of Jio Platforms. Meta and Google hold 9.9% and 7.7% respectively, according to Reuters. Shares are due to begin trading on October 28, and 19 banks have been hired to manage the offering. The deal was originally planned as a sale by existing holders, but it will now be purely new fundraising.

why it matters

The listing was delayed by the Iran war, which slowed IPO activity and dampened investor appetite for new shares. The size of this deal will test how much demand India's equity market has for large new supply, and the outcome will show whether the window for big offerings is open again.

market impact

Indian equities: a record-size share sale may absorb liquidity; Reliance Industries: direct exposure via its 66.43% stake

tags

instruments