Jio targets $3.2 billion in planned IPO at valuation of up to $108.3 billion
Key Facts
Jio Platforms aims to raise up to $3.2 billion in an initial public offering in India, according to Reuters, with targeted proceeds exceeding the country's previous largest IPO. The subscription period is scheduled to open on October 21, according to Investing, which reported pricing details for the shares being offered to investors. The company set a floor price of 1,065 rupees per share and a ceiling of 1,119 rupees. The offering values Jio Platforms at up to $108.3 billion, according to Reuters' report on the arrangements. The announcement of the IPO terms coincides with a public dispute over the entry of Starlink's satellite internet services into the Indian market.
Jio plans to allocate up to 275 billion rupees from the offering's proceeds to repay or prepay loans at its telecom arm, according to Reuters. The allocation is equivalent to $2.89 billion, making it the largest portion of the funds the company seeks to raise from investors. The stated use of proceeds concerns loans at the telecom business, as part of arrangements for Jio Platforms' planned offering. By comparison, Hyundai Motor India's IPO raised 278.7 billion rupees in October 2024, according to Reuters. The automaker's offering remained the largest IPO in India's history ahead of Jio's planned transaction, which aims to surpass it in targeted proceeds.
The group's telecom business is underpinned by a base of about 533 million subscribers at Reliance Jio Infocomm, according to Reuters' report on the offering. The company accounts for 60% of India's data traffic, reflecting the scale of its operations in the domestic telecom services market. In its assessment of the sector's outlook, Nomura sees the period of easy subscriber acquisition for Indian telecom operators nearing its end. The firm expects tariff increases to become the main driver of earnings growth for those companies, according to Reuters. On the offering's pricing, analysts who spoke to the agency described the valuation as "fair" and saw scope for the shares to rise when trading begins.
In satellite internet, Reliance Jio signed an agreement with SpaceX to make Starlink services available in India, according to Reuters. Jio Platforms also has a satellite communications joint venture with SES, according to an official statement from the latter. Jio Platforms owns 51% of the venture, while its partner holds 49%, according to the statement issued when its formation was announced. The Starlink agreement followed a dispute over how to allocate the spectrum needed to provide satellite communications services in the Indian market. Reliance called for the spectrum to be auctioned, while Elon Musk wanted it allocated administratively, according to Reuters' report on the agreement to make the service available.
Ahead of the announcement of the offering's details, Musk accused business interests of obstructing Starlink's launch in India, according to a report published by Investing. He said the company was being obstructed by "some moneyed interests to maintain their monopolistic grip on the Indian people". Indian Communications Minister Jyotiraditya Scindia responded to the monopoly allegation by saying that "India does not allow monopolies in any sector", according to Reuters. The agency reported that Musk provided no evidence against Mukesh Ambani in his remarks about obstruction of the service's launch. It also said Reliance Jio did not respond to a request for comment on those remarks, which came as procedures for Starlink's entry into the market continued.
On the regulatory front, India's communications ministry said security assessments were under way for all entities licensed to provide satellite communications services. The ministry said the assessments covered all 3 entities, as part of the procedures required for this activity in the country, according to a statement published by the government's Press Information Bureau. It said the licensed entities were at a "similar regulatory stage" in its response concerning the approval process for satellite services. Starlink's commercial launch in India remains conditional on meeting security compliance requirements and obtaining a spectrum allocation, according to Reuters. As for the next step in Jio Platforms' offering timetable, the company's shares are expected to begin trading on October 28, according to the agency.