Jio Platforms to Raise $3.2 Billion in India’s Largest IPO by Rupees

Jio Platforms, the leading telecom operator in India supported by global giants Meta and Google, plans to raise up to 302 billion rupees, equivalent to about $3.2 billion, through an initial public offering (IPO). This move marks a significant milestone in India’s capital markets as it represents the largest IPO ever measured in Indian rupees.

The company will offer 270 million shares with a price band set between 1,065 and 1,119 rupees per share. The public offering is scheduled to take place from October 21 to October 23, according to statements filed by Reliance Industries, Jio’s parent company, on the stock exchanges.

While the IPO will be the biggest in India in terms of local currency raised, it ranks as the second largest globally in dollar terms, just behind Hyundai Motors’ $3.3 billion IPO earlier this year. Market analysts from Indian intelligence firm Prime Database initially expected Jio to raise closer to 377 billion rupees, indicating a lower valuation than some had anticipated.

At the upper limit of the share price range, Jio Platforms will have a market valuation around $108 billion. This figure falls short of earlier projections and reflects some investor hesitation about the company’s positioning. Despite Jio’s efforts to brand itself as a technology-driven enterprise rather than a traditional telecom provider, skepticism remains about the core revenue model.

Deven Choksey, managing director at Mumbai-based DRChoksey Finserv, explained to CNBC that Jio fundamentally operates as a telecom company. Although Jio owns digital content and gaming platforms that help drive increased data usage, the majority of its income still comes from selling internet data services.

Jio commands the largest subscriber base in India, with over half a billion users. Yet, even with this scale, its valuation at the current IPO price will be lower than its closest competitor, Bharti Airtel. Airtel’s market capitalization stands at about $117.5 billion, according to data from LSEG.

The ownership structure remains largely unchanged by the IPO. Reliance Industries holds a controlling stake of more than 66% in Jio Platforms. Meta’s affiliate Jaadhu Holdings owns nearly 10%, while Google International controls approximately 7.7%. Importantly, neither Meta nor Google intends to sell any of their shares during this offering, as stated in the IPO documentation.

In addition to its core telecom services, Jio Platforms is preparing to launch satellite communication capabilities within India. This ambitious venture includes plans to deploy a network of roughly 1,600 low Earth orbit (LEO) satellites complemented by 23 ground stations to enhance nationwide connectivity.

This satellite project has put Jio in the spotlight amid a public dispute with Elon Musk’s Starlink. Recently, Musk accused Jio owner Mukesh Ambani of obstructing Starlink’s entry into the Indian market, alleging attempts to preserve a monopoly over internet services in the country.

The telecom sector in India continues to evolve rapidly, shaped by fierce competition and technological innovation. Jio’s IPO and its satellite program illustrate the company’s strategy to expand beyond traditional telecom services and capture a broader role in the digital economy. Investors and market watchers will be closely observing how these developments influence India’s technology and telecommunications landscape in the coming years.