Key Takeaways
- • Jio Platforms shares rose 21% in their Mumbai debut on Wednesday, opening at 1,358 rupees against an offer price of 1,119 rupees, following India's largest-ever IPO raising a record $3.2 billion.
- • At the opening price, Jio is valued at about $131.52 billion, making it the second-largest company by market capitalisation in India behind parent Reliance Industries and ahead of Bharti Airtel and HDFC Bank.
- • The listing advances Mukesh Ambani's plan to transform Reliance Industries from an oil-and-chemicals conglomerate into an "everything company" spanning consumer and technology.
- • India ranks as the world's busiest IPO market by deal count with 246 listings this year, though it is fourth by money raised at $13.5 billion, per LSEG data.
- • Brokerages called the $108.3 billion valuation attractive but flagged competition, heavy capital spending and changes to telecom spectrum, licensing and fee rules as key risks.
Summary
Jio Platforms shares soared 21% in their Mumbai debut on Wednesday, giving India's biggest-ever initial public offering a strong start and marking Reliance Industries' first listing in two decades, according to Reuters. The stock opened at 1,358 rupees a share, compared with the 1,119-rupee offer price. At that level Jio is valued at about $131.52 billion, overtaking Bharti Airtel and HDFC Bank to become India's second-largest company by market capitalisation, trailing only its parent Reliance. The telecoms and digital unit, which serves more than 530 million customers, is backed by Meta Platforms and Alphabet's Google. Ahead of the listing, the grey-market premium for Jio shares indicated gains of about 22%.
The listing supports Mukesh Ambani's strategy of converting Reliance Industries from an oil-and-chemicals conglomerate into an "everything company" spanning consumer and technology businesses. The listing ceremony was attended by Mukesh Ambani, his eldest son Akash Ambani, who is Jio's managing director, his wife Nita Ambani, and children Isha and Anant Ambani. Mukesh Ambani was seen in tears as Anant traced the legacies and journey of Reliance and Jio in a speech. The family rang the IPO bell on stage at the National Stock Exchange in Mumbai. Major Indian newspapers carried front-page advertisements from Reliance Jio reading "Thank you, India."
India has become the world's busiest IPO market this year by number of deals, with 246 listings so far, but it ranks fourth by money raised at $13.5 billion, behind the United States, mainland China and Hong Kong, according to LSEG data. Several brokerages described the $108.3 billion valuation as attractive and pointed to potential upside. They also flagged risks including competition, heavy capital spending, and changes to India's telecom rules covering spectrum, licensing and fees.
The listing supports Mukesh Ambani's strategy of converting Reliance Industries from an oil-and-chemicals conglomerate into an "everything company" spanning consumer and technology businesses. The listing ceremony was attended by Mukesh Ambani, his eldest son Akash Ambani, who is Jio's managing director, his wife Nita Ambani, and children Isha and Anant Ambani. Mukesh Ambani was seen in tears as Anant traced the legacies and journey of Reliance and Jio in a speech. The family rang the IPO bell on stage at the National Stock Exchange in Mumbai. Major Indian newspapers carried front-page advertisements from Reliance Jio reading "Thank you, India."
India has become the world's busiest IPO market this year by number of deals, with 246 listings so far, but it ranks fourth by money raised at $13.5 billion, behind the United States, mainland China and Hong Kong, according to LSEG data. Several brokerages described the $108.3 billion valuation as attractive and pointed to potential upside. They also flagged risks including competition, heavy capital spending, and changes to India's telecom rules covering spectrum, licensing and fees.
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