Jio IPO draws strong demand
MUMBAI : Reliance Industries-backed Jio Platforms’ $3.2-billion initial public offering (IPO) attracted strong investor demand on Wednesday, with the issue fully subscribed in less than two hours of public bidding. The offering, valued at about ₹30,200 crore, is set to become India’s largest IPO to date, marking a major milestone for billionaire Mukesh Ambani’s business conglomerate.
According to Reuters, bids had exceeded twice the number of shares available by early Wednesday afternoon. The rapid subscription comes at a time when India’s primary market is witnessing increased scrutiny of large public offerings and investors globally are reassessing valuations, particularly of companies associated with artificial intelligence.
The IPO is the first public offering from the Reliance conglomerate in two decades. Jio Platforms is seeking a valuation of up to $108.3 billion, potentially making it one of India’s largest listed companies by market capitalisation when its shares begin trading.
The public issue opened on October 21 and will close on October 23. The price band has been fixed at ₹1,065–₹1,119 per share. The shares are scheduled to list on the stock exchanges on October 28.
Institutional investors lead demand
Institutional investors have been at the forefront of the subscription, with their reserved portion receiving bids for 4.9 times the shares available, according to exchange data cited by Reuters.
The overall issue was subscribed within approximately 100 minutes, while institutional investors covered their allotted portion in about 10 minutes, Reuters reported, citing people familiar with the offering.
Retail participation, however, was comparatively slower in the early stages. By Wednesday, retail investors had bid for about 0.54 times the shares reserved for them. Approximately one-third of the issue has been earmarked for retail investors.
The response contrasts with the relatively subdued initial demand seen in some other large Indian offerings. The National Stock Exchange of India’s proposed share sale, for instance, had received subscriptions for only 42% of its allotted portion on the first day, while Hyundai Motor India’s IPO had attracted bids for 18% of its offering on its opening day.
Aishvarya Dadheech, founder of Fident Asset Management, attributed the demand for Jio shares to the company’s position in the telecommunications market and its valuation.
“Jio has changed India’s telecom landscape and (the IPO) offers a very reasonable valuation with strong fundamentals,” he said, according to Reuters.
A major test for India’s IPO market
The offering is being closely watched as a measure of investor appetite for large share sales, particularly those involving companies with substantial exposure to technology and digital services.
Jio Platforms has backing from global technology companies Meta and Alphabet’s Google, along with major domestic and international institutional investors. Its proposed valuation of up to $108.3 billion reflects its scale in telecommunications and its ambitions across the broader digital economy.
However, more than 90% of the company’s revenue comes from its telecommunications business, Reuters reported. This makes the performance of its core connectivity operations particularly important to its financial outlook, even as it expands into other areas.
The offering also comes amid growing scrutiny of artificial intelligence-related valuations. Investors have become more selective about technology companies, with questions about future profitability and the sustainability of high valuations influencing decisions in global markets.
From low-cost data to a digital services business
Jio’s telecommunications business began operations in 2016 with a strategy centred on making mobile data substantially more affordable and offering free voice calls. The approach helped it rapidly gain market share from established competitors, including Bharti Airtel and Vodafone Idea.
Jio Platforms now has more than 500 million subscribers, making it the world’s second-largest telecommunications operator within a single country, after China Mobile, according to Reuters.
The business has expanded beyond mobile connectivity into broadband, digital entertainment, cloud services and enterprise offerings. It occupies a central position in Reliance Industries’ strategy to build a large digital consumer and business-services ecosystem.
The scale of its subscriber base provides an extensive distribution network for new services. However, the company’s ability to increase revenue per user, maintain subscriber growth and generate sustainable cash flows will remain important considerations for investors following the listing.
Global investors participate in the offering
Ahead of the public issue, Jio Platforms allotted shares worth approximately $853 million to more than 200 domestic and international investors, Reuters reported. These included the Abu Dhabi Investment Authority and BlackRock.
The reserved portion for these investors had attracted bids totalling more than $25 billion, according to Reuters.
The participation of large institutional investors provides an indication of demand for the offering, although it does not guarantee how the shares will perform after listing.
Retail investors, as well as eligible employees and shareholders of Reliance Industries, are also participating in the issue.
Proceeds to support telecom business
Jio Platforms intends to use a substantial portion of the IPO proceeds to repay or prepay borrowings at its telecommunications subsidiary, which is led by Akash Ambani, Mukesh Ambani’s son. The company’s prospectus indicates that up to $2.89 billion of the proceeds will be directed towards this purpose, with the remainder earmarked for general corporate purposes, including capital expenditure.
The proposed use of the funds is significant because it could help strengthen the financial position of the telecommunications business while providing resources for further investment.
Reliance Industries, whose businesses span energy, retail and digital services, has been a major wealth generator for Indian investors over several decades. Its shares have delivered substantial long-term gains, according to historical market data cited by Reuters.
The Jio Platforms IPO is therefore not only a major fundraising event but also a test of investor confidence in Reliance’s next phase of growth.
The issue’s subscription figures, final allotment and subsequent market performance will provide further indications of demand for one of India’s most closely watched public offerings.
