Jio Platforms IPO: India's Largest Listing Targets October at $114B!

Jio Platforms, the digital arm of Reliance Industries, is gearing up for what could be India's largest-ever initial public offering (IPO), targeting an impressive $114 billion (approximately Rs 11 lakh crore) valuation. The highly anticipated share sale is expected to open around October 21, aiming to complete its listing process before October 30.

At the proposed valuation, Jio Platforms would emerge as India's third most valuable publicly traded company, trailing only its parent company, Reliance, and surpassing its main competitor, Bharti Airtel. Reliance currently boasts a market capitalization of about $169 billion, while Bharti Airtel stands at around $116 billion.

The company had filed its draft prospectus in June, outlining an offering of as many as 27 crore new shares.

This represents roughly 2.93 percent of its post-issue equity capital.

While earlier discussions had hinted at even higher valuations, ranging from $130 billion to $170 billion, current pricing ambitions have been adjusted, partly due to a broader stock market rout that has impacted several other Indian IPOs.

Financial analysts have closely followed Jio's journey. Motilal Oswal Financial Services estimated Jio's valuation to be between $115 billion and $118 billion, while Dolat Capital provided a valuation closer to $110 billion. The shares being offered in this IPO are expected to be worth around $3.4 billion (approximately Rs 32,000-32,500 crore).

This figure is still significantly higher than the Rs 27,870 crore ($2.9 billion) raised by Hyundai Motor India Ltd in its 2024 IPO, highlighting the sheer scale of Jio's offering.

Jio's massive share sale is set to contribute to an already busy year for India's IPO market. To manage this monumental listing, the company has enlisted the expertise of 19 banks, including prominent names like Kotak Mahindra Capital, Morgan Stanley, BofA Securities, Axis Capital, BNP Paribas, and Citigroup.

While investor meetings are being prepared and an October listing looks likely, the final valuation and timetable remain subjects of ongoing discussion.

Proceeds from the IPO are primarily intended for prepaying borrowings and general corporate purposes.

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